 Hello, I'm Amis the Basil Chapman as we do each and every Tuesday at 20 past the hour and don't forget Basil has an outstanding show here Every trading day folks 10 to 11 Eastern standard time also is a great newsletter that opening call now It's very easy to get the opening call folks You come over to our website at TFN and you go under newsletters You're gonna see it on the right-hand side a left-hand side rally You just hit the opening call you can get the opening call for one month for a hundred and forty nine dollars You get it for six months to six ninety five which is a savings of a hundred ninety nine dollars at twenty two percent And you can get it for one year for eleven ninety five, which is a savings of five hundred ninety three dollars at thirty three percent Now they all come folks with a thirty-day money back guarantee Basil has about twelve beautiful workshops out there You come in you get it you test it if it works for you awesome For some reason it doesn't guess what you get your money back get over there get it It's an amazing trading market that we have right now Basil Chapman, what's going on? Well, as you say it's an amazing trading. I mean we've had some whoppers of a move And you know if one is able to step back and look at the picture just as a Trading vehicle as you said a moment ago It's much better than having this preconception that we crashing to the downside Or we skyrocketing to new highs. Whoops. I gotta call I'll leave that alone and That's saying to buy everything Basil Yeah, yeah, so what's really important so for us I've been talking to you for about a week or so and I've been showing on my program that the diamonds are ready for Some kind of a move to the upside and it's like an elastic band being stretched but at the same time the type of Selling pressure that's being in just in vogue. I mean since we still have that short position from August the 16 From yeah, the middle of August as an intermediate term One-to-one short the doubt that via the DOG But we've been buying the diamonds in this area because it looks very much like there must be some kind of a release of tension But the fighting you can see for instance, I had what I call the chap we've Trin gauge all I use is Richard arms Yes, trading in a I I don't use I don't even recall exactly how he uses it or though I know how it's made up But I just use two numbers on the upside on the downside if on the upside it goes to a certain level It means that the market it within two days the e-money S&P should have a sharp move up that'll help the market to rally And if it is very low, it means that the very next day the Dow should Whatever the futures are it doesn't matter because the Dow should go negative usually early in the morning Well when the futures were up screaming like this, I thought well at one point the down was up 600 How could it possibly work? Well, we came down from over 600 from Ohio 30,000 837 right down to 30,300 I mean that's incredible that we're able to do that and today. There's another flashing signal that says There should be some kind of a negative because you could even be minus one But some kind of negative e in the Dow tomorrow. So with that said Basically, I'm making it as simple as possible. We are long via the diamonds for my subscribers to opening call if the Dow can close about 30,000 454 is the number but I'm really saying it needs to close about 30,500 next couple of days we can start to form this cup formation and in my show tomorrow I'll show some of the techniques where I use the cup. I use the chapwave inside wedge That's the target resistance line in this daily chart. Yes, it's a little green line And here's the resistance that we snapped out of three days ago. This is a chapwave inside track Repelent zone. So that's one thing. The other is what I was looking at what to buy I thought I want something that could possibly be very Separate from the market itself in its own orbit. So we over the last I'd say seven years Every year we've bought Bank of America towards the low of that particular phase and as it's run up very sharply We've taken profits and then as it came down We got out and then we waited and waited and we did it again We did it a little earlier this year. It didn't quite work out. We lost a very small I can't remember maybe lost a half a point or we gained but we're out of it and we waited and waited So on Thursday as the market was turning around Intraday, I sent out an email saying to my subscribers saying we want to buy Bank of America Even though the earnings are coming out on Monday It's in the sweet spot right now with the way yields are on the way the financials are set up Even if it's just a trade. So we bought in the 31s and today did 30 35 36 in just four sessions So that is a sign to me that says Selectivity is really very important right now. I don't think you can just broadly buy any particular stock So maybe thinking of a sector or the best stocks in the sector or maybe even the sector ETF Like we've got the diamonds and then if the market starts to unfold moving to the upside And I do think that there's there's upside to come because we are extremely oversold I'll show you the VIX index in a moment, but In this particular instance, we're being very selective. We added to our portfolio today with the stock That's just being decimated down about almost 90 percent from as high in an area that if there is a bit of a recovery Even if it's weeks, this should participate of being very selective Sticking more with the lower price stocks. So if you look at the volatility index and once again I'll say in my show the Tiger technicians out tomorrow I'll talk about it because it'll be very important to at between 10 and 11 tomorrow to be following it The volatility index has held very nicely Up towards the high 34 88 was the high around about the 28th of September It pulled back and then I made a pattern that I talked about which is an arch formation But it first had to create this cup formation. Well, what happens is when something goes back to the previous high I like to do a vertical measure. In other words, I draw it I just got the straight line down. You can see the MACD was strong The on balance volume was strong the stochastic went over 80 percent the nine period was way over the 14 Now look a little of a sudden with this the ready that was that was on the 12th Thursday It went it didn't go above the 34 88 level It was just under it and look the technicals are weaker here So I'm saying keep the numbers in mind if the volatility index starts to train the 29s and the 28s That's going to be very good for the market if the dark and get to that As I said before if the dark and rally and it's comparable to the other indices But in this case, I'd like it to rally to the 3500 level. I think we've got ourselves a nice trading range Market and that's the way I'm looking at a break underneath 29,500 says forget it What are you thinking? But so far it's acting very well And as I say these specific areas are very important that we're looking at and you know It's cool basil is that the you know when you talk about the dial and the vertical, right? What's actually happening out here today the swing point from October 5th We're taking out with volume the swing point at 2.7 million. Okay, and right now we are at 3.9 so that's saying the diamonds, you know should go to 321 and we're 304 So as you're doing it you're talking I was just looking at saying myself. That's that's quite a That that's blowing away a swing point folks. That's the bottom line So well also what's important about that is the MACD has been positive the last week or so Castic is at 855. I want 66. I want to see it over 80% so those are the numbers I'm looking at and folks don't forget 10 o'clock tomorrow morning You can listen to them come over to our website right now get his newsletter You'll be growling and prowling and riding that way All right, you have a great one safe one. We look forward to show tomorrow. Thank you very much Thank you. Stay right there folks to come right back