 folks, happy new year. And our first focus stock going into 2021 is going to be NIO, Symbol NIO. And what we're going to talk about in this video is the headline risk that has already been overcome, the headline risk that remains. And then we're going to segue over into the technical analysis of the charts using multi-time frame analysis. And what that means is that we're going to look at the monthly chart, weekly chart, daily chart, and that helps guide us. It gives us a longer term view of where the stock has been to identify where it might be going. But before we go to our analysis of NIO, I want to introduce you to our sponsor. And that is the folks over TrendSpider. I'll be using their charting software later on in this commentary. What TrendSpider does, if you're not familiar, it automates the grunt work for you. It is the charting software for the new millennium. If you want to speed up your technical analysis, if you want to improve your accuracy, whether or not you're an experienced trader, whether or not you're a newbie trader, this works for you. And I'm going to show you later on the whys of how you use the automated features to help benefit you. As an experienced trader, as I am, I use the automated trend line functionality to act as a spell check for my accuracy of the manually drawn trend lines I'll throw up on the chart at any given time. For newbies, what you'll still want to do, even though it's automated technical analysis, you still want to refine what's going on in here and hone your skills. So draw your manual trend lines and then validate the accuracy of those trend lines by overlaying on top of what you've already drawn the automated trend lines. I'm going to show you that a little bit. So TrendSpider today is their last day, January 3rd, I believe this is, right? Yep, January 3rd. Last day of their 50% off discount. So use the link below, don't use my typical discount code of 35% off, use, just go to the website, use the link below, get taken over there, 50% off, TrendSpider, go to it, let's get to our analysis. So let's begin with the headline risk that has already been announced. There have already been two pieces, one had to deal with an upgrade from Bank of America. I reconciled that versus the chart. I'll talk about that in greater detail. We'll leave that as our third piece of headline risk. The first piece that has me concerned, we're going to go over this first and that is the delisting of three Chinese telecom giants off of the New York Stock Exchange. And this is posted on zero hedge. I'll link to it at the bottom of this post so you can read it in full. But remember, we're going to January 6th, which is going to be the meeting of Congress to validate the electoral college results. Then if they find for President-elect Biden, then by January 20th, you should expect a lot of body blows to be done to China by the outgoing Trump administration. And it's already begun. Now, while most of these shares trade by and large in terms of volume on the Hong Kong Stock Exchange, they do trade on the New York Stock Exchange, but effective between January 7th and the 11th, they will be delisted. So keep in mind that Neo is a Chinese company based out of Shanghai. And while the probabilities of a dig listing are improbable, we need to keep in mind that there is risk out there. We want to acknowledge it. Perhaps that will be borne out through our position sizing. Through the length of time, we decide which to take profits. Do we want to get in out right away? Or do we want to eat until after January the 20th? Have that in the rear view mirror. So just be aware of the potential out there for some scorched earth policy being sent out by the Trump administration to the markets to China. And you may be saying these companies are intertwined or have some sort of engagement with the Chinese Communist Party. Therefore, the military folks, if you're doing business in China, you have to have an affiliation with the Chinese Communist Party. So there is there is risk out there. So I would not dismiss this out of hand. Is it improbable? Yes. Is it zero probability? No, let's move on. Now, there are two pieces of headline risk that are in the rear view mirror on the 10th of December of last year. Neo had an offering announcement of 60 million new shares. They upped that to 68 million shares on December the 14th. I took a look at the chart and they held up fairly well. I mean, the news should have been pretty negative for the price action of the shares. It wasn't. It wasn't that bad. We'll go over that price action in a moment. Now, what's good about this news is that it's in the rear view mirror. We don't have to be concerned about this for a while now. Small companies like this from time to time will issue new shares. It's just a foregone conclusion that it's going to happen. So it's good to see that, you know what, if you're looking to do a short term swing trade of Neo, you don't have to worry about this, meaning new shares being issued, at least in the short term. So it's good news that this is in the rear view mirror very positive. Now, this piece of news just came out moments ago. I didn't plan on speaking about this. Neo's record run continues as delivery spike 121% in December. Wow. EV Maker confirms sedan launch on Neo Day. Okay. And that's what I wanted to talk about. Neo Day. On the 31st, Bank of America raised its price target ahead of the January 9 Neo Day event. So when I hear that Bank of America or any bank out there, any analytical firm raises their price target in front of an event, I have to start saying, you know what, this has been a hot stock. These guys, why are they giving me free information? I don't have an account with Bank of America. I closed my accounts with Bank of America after the 2007, 2008 financial crisis. So why are they giving me free news? So what I mentioned earlier is that I wanted to reconcile their announcement versus the price action of the chart. Was their upgrade announced during a timeframe on the chart where it appears as though the share price may be stalling? Is it extremely overbought and improbable that we're going to get a real huge move up higher and that the Neo Day event could in fact be a sell the news day? It's possible. But I can't say that I found anything nefarious with the timing of the upgrade by B of A. So let's go to the chart and let's talk about it. So as I proceeded into the technical analysis of Neo, I was thinking about, okay, B of A comes out, they make their announcement on the 31st of December in advance of Neo Day, they're upgrading it. What's in it for them, for the most part? I have little respect for the analytical community, as you might imagine. So the place I wanted to begin with my technical analysis was with the monthly chart. And as you could see here, we left out the month of November very overbought relative to the third standard deviation Bollinger Band, which is in red. Now you may be saying, what is that stuff? I'll save you the technical jargon, folks. If you're not familiar with it, we're not supposed to be there. It signals the fact that we will in all probability, either trade sideways with the bias to the downside, need it happen immediately? No. It is a sign of a strong stock. In fact, you could take a look going back several months, we've been flirting with the third standard deviation Bollinger Band and all we did was continue higher. The only thing I could say is that we need to keep an open mind, it can continue higher. The however is, is that it will not end well. What happened in the month of December? Well, we did about a three quarter retracement of the entire price movement of November. So that's a ton of volatility. We did not put in a new monthly high. So if there's one thing that I was thinking about with the B of A announcement was that, you know, finally they come out with an upgrade, but we stopped making new highs on a monthly time frame. Now what does that mean? It can't move higher. Of course not. It can move higher so that what we need to do now is drill down even further to see whether or not there is a probability that that is going to happen. So let's now go to a weekly chart. So on a weekly time frame, you could see that this is a nice consolidation and over here I have a button where I could add my manually drawn trend lines and then I can have my automated weekly trend lines drawn for me. Let's throw up my manual lines first and you could see that we held support, critical support that was first resistance back here in the first week of November, retested in the second week, retested again in the third week of November follow through then failure as we proceeded into the beginning of December where we simply consolidated. Now this 4071 mark is critical support. If we fail to hold this mark first out best out, you need to move to the sidelines and get out. At least that's what I would do. Now on the final week of December, what we did here is that we broke out and above a secondary down trend line in red. We closed right at resistance at around 4874 which is the closing high. Now what I want to see next week ideally for me to get long of NEO is a pullback and a retest of this secondary down trend line because I don't want to buy it into resistance there is a caveat and I'm going to share that with you next so stick around with me for a moment. Okay so here's the alert using trend spider. I want to know when NEO touches or bounces off of this breakout point. Here's the note to self NEO weekly breakout point retest, long entry point. I'm going to keep it active for five days. Say we're good to go. Now that's one of two potential entry points. Now the second one would be a breakout and that would be a breakout. I'm going to move this up a little bit. I'm going to move it up to $49 per share and I want to know whether we break through. I'm going to keep no sensitivity because all I care about is a close above 49 bucks per share. If it doesn't, if it closes at $48.99 I don't care. We're going to stay away from it. If it closes above $49 per share I'm going to get alerted and then we will look to enter the trade. So our alert is set. NEO breakout. I don't care if it touches. I don't care if it bounces so we'll take those off. NEO breakout, note to self, long entry, five days active. We're good to go. It's at this point where I set it and forget it. I don't care what happens between now and the time that these alerts fire up. I'll review them as I do all my alerts this time next week and by the way the version of trend spider that I'm using right here right now is the same exact version you get as a gold level member to the contrarian trader. I believe in it so much the trend spider that I included with my silver and gold level member packages. So take advantage of my 14 day for trial offer. Daily chart NEO. I think we're good here in terms of our strategy for entry. One other entry point I could see here using a daily chart would be a rally and a close above $50.60 if you wanted to add more on strength because you have a bit of a volume shelf here, a bit of resistance. So again, this is another alert. This will be our third alert. Now this note assumes that I'm already long of the position and we'll be looking to add more on strength. So we want to know the breakout. We have zero sensitivity. All I care about is the close above that mark. Four hour timeframe. Neo daily breakout, add to long position, five days active. We're good to go. Set it and forget it. We're good to go with our strategy as we proceed into the new trading week. No need to sit in front of your computer watching to see tic-tac-tac. What is Neo doing? Let the computer do the work for you. Let the software do the work for you. It reduces costly mistakes. Take advantage of TrendSpider. Again, it's free with my membership levels, silver and gold. And with that folks, join us tonight, Sunday Night Futures Live. Every Sunday night we go live, 6 p.m. Eastern Standard Time or join us Thursday nights at 6 p.m. Eastern Standard Time. That's where we review the closing price action on a weekly timeframe. We'll review weekly charts on Sunday nights. We review the opening futures action at 6 p.m. Eastern Standard Time and we'll take some chart requests from members and the audience as well if we have time. Till then, everybody please smash that subscribe button. Have a great remainder of your weekend and I'll talk to you tonight. Be well.