 Welcome back folks, let's go over to our man Mr. Basil Chapman as you do each and every Thursday at 20 past the second hour Don't forget folks Basil has an outstanding show here every trading day 12 to 1 Eastern Standard Time also has a great newsletter the way you get his newsletter the opening call you come over to our website at TFNN You're gonna hit newsletters as you hit newsletters. You're gonna see the opening call right on the right-hand side. You can hit view Bottom line you can hit subscribe. You're gonna see the opening call you get the opening call for one month for $128 you can get it for six months for $595. That's a hundred and seventy three dollar savings You can get it for a year for nine ninety five, which is a five hundred and forty one dollar savings They all come with a 30-day money back guarantee folks check it out right in the front page of TFNN Basil Chapman, what's going on? Hello, I got you now. Okay. How are you doing good man? Good? Good a very interesting moment You're at right to this particular Closing prices the end of February. So you got a monthly candle here on the Dow. You see over this side. Yeah on the right side chart Very good 25,915 Well, 16 is a 16 and the all-time high is 26,951 but There are a lot of signs that are saying that it's getting harder and harder for the Dow to break out right at this moment Let me see if I can move this chart Yep, and if you go to the left side back in December the third there was a little doji spiked to the upside at 25,980 and if you go a little further back On the 8th of November the high was 26,277 We went we went right in between we went to two 26,241 We had three little doji candles even today was a fairly narrow candle and what I drew in is this Pattern and it says this particular channel, which is it's sometimes difficult to recognize until it's almost Too late to say oh Now what do we do because this is the kind of channel where every time it bumped into that green resistance line You could actually have bought it because it was going to go right back to the green line after it went down to the pink line And now it's at that pink line except this time You're finally on January the third of this year The Dow went above the right here above the 14 and the nine period exponential moving averages the mag D cross positive and that green line Which is the nine period differential? This is what I call the fast moving average of the In this particular case, it's the mag D the moving average convergence divergence Hasn't had not crossed negative until right here today It was the first day minus three that's the first time that little green and it's just very slight Yeah, it's coming coming right as the Dow has as support at 25,000 right yet 900 And then the very next one's around about 25,770 So we're getting becoming a little cautious. We've got a lot of long positions in our in the for my subscribers to my opening call And I said in my traders corner, that's the the page that has all the different positions What we're looking at where we're putting in stops or buy stops whatever it is I said today they We're going to get a little cautious for three days We've had a particular level on the Dow that we said if it gets to that level at a certain time We want to start taking certain positions cautionary positions And it never yesterday had just missed it Day before just missed it and today went there exactly when I wanted it And now what we're looking at is It doesn't say you can't bounce and this is a pattern that I'd shown on my show at noon every day I do a detailed technical analysis based on my chapter wave methodology and I I'm just trying to think when it was I think it was Before last weekend. I drawn a pattern. I said my experience with this very narrow up chance like a tube Let's imagine it's a glass tube Finished tube it goes all the way up and you've got a little worm that just keeps wiggling on its way up like it's walking on a branch When it breaks that support and this is viva. This is viva systems in cloud-based business solutions It did exactly the same thing as the day. I actually it was a spectacular I went from 72 to the most recent high of 124 I'd say a double is not bad since december the 26th It's great. So this viva. This is the pattern. I drew I'm going to put it right here at the edge and you'll see there's a little the two little doji candles And then I said if it takes out that key support The pattern that my experience tells me from years and years of looking at these charts Is that when there's a very narrow channel? You don't see a massive smash to the downside What you see is and now I drew this gray dashed line and I said you see a pullback You see a rally that might or might not just take out the previous high And then you start to see a deeper decline So what I'm anticipating now is that we start to see a wilder Move in the down the s and p in the cues and the i w m It doesn't say that you have to crash to the outside But it does say now starts the consolidation phase and it should be pretty pretty wild And you can see what happened with viva when it when it took out the magt cross negative off They've been positive for so long. You started to get that choppiness. So what I'm saying is So for subscribers from opening call, we've become somewhat cautious There are a couple of positions that we renounce some short positions And I'm saying we need to see the magt D Widen so the green line goes sharply below the red line That will say we've got momentum to the downside if it's just narrow You're just going to get a little chop chop chop to the to the downside So it's a process you look at the middle chart. That's the weekly chart. Look at the spectacular v-shaped pattern Bumping into resistance. So my guess is that next week we actually see a peak a that means no new high You're not not supposed to say that don't tell the market But I'm saying that I don't think the jar's going above 26,241 At least for the next week or two because I think we're going to make a peak with a lower high Next week, but you can see the technicals and the weekly chart are very strong So that's what I've been saying that I think we have a consolidation Whether it's time Or price or time and price I just want to know until we can break these support levels how we break them is important But there's a really very good support in the weekly chart in the down around about the 25,200 to 25,000 level So this is a very important period. Remember we were talking about the the dollar And the dollar is actually holding pretty well when you think about it. It's well after what of what gold did But I always talk about those. I say sometimes for about six weeks Two or three times a year you'll get gold in the dollar actually going in the same direction if they're both coming down Um, and then they start to go back to the counterpoint where one goes up and the other goes down This is very important. If the if the dollar is able to get to 96 75 by tuesday of wednesday of next week, that's going to be good action If it breaks down under 95 50, I have to say whoops Maybe it can last a lot longer. So this is a very important period Yeah, and we know we look at this market basil the you can see I mean, we've actually been in a consolidation since uh, january of 2018 You know if you talk about the dollar, uh, no, I'm talking about the market. They're down. Yeah, correct Correct. Yes. That's right. Yeah, I mean, you know, we got it's a it's a it's a wide consolidation folks I mean, so, you know, we'll see where this baby shakes out But you know the other the other thing I want to mention is I spoke about this last week is that I think that the tlt Is very important here bonds my my chart says that bonds at 120 right now This is a tlt. Yeah, if they break 119 I'm looking at the t and x the tenure And I think that the Fed is going to get their way without actually doing Doing anything looks to me like these yields want to go a little higher So that could be part of the inflationary thing that they might be thinking of The market might help them out and folks you can check out basil every trading day right here 12 to 1 Come over to our website tfnn going to newsletters to see the opening call to subscribe right here right now Basil you have a great one safe when we look forward to show tomorrow. Thank you very much. Tom you too. Stay right there folks. Come right back