Trading Options For Short Term Profit (with my mentor Ryan)

Good morning, Salime. Morning, Drew. Good morning, Duncan. Good morning, John. What's up, Errol? Good morning, Brandon. Good to see all of you. I'm really pumped today. I'm going to be joined by somebody that I really respect. And you're going to find out why here in a second. But before we introduce Ryan to capitalism.com, we have something very important that we do here on Capitalism. Coffee. It's the reason why you get up in the morning. It's something that we call the simultaneous sip. It's the thing that makes everything better. It makes the stock market better. It makes option trading better. It makes everything even down days on the stock market, the simultaneous sip makes it better. Good morning, Awana. Good morning, Chris Van Loan. Good morning, Amanda. Good morning all of you who are watching on the spillover on YouTube. Good to see you. Good morning, 1% members. Good morning, my friends who are just creeping up on us on Facebook. You've made it just in time for the simultaneous sip. You know, it's not hard to participate. All it needs, all you need is a cup or a mug or a glass or a chalice, a stein, a tankard, a thermos, a flask, a bowl, a vessel of any kind. And you need to fill it with your favorite liquid. Today I've got decaf. And then you join me now for the unparalleled pleasure. The dopamine hit of the day. The thing that makes the world go round is something called the simultaneous sip.

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Oh, yeah. Feel it, Feel it. All right, so I want to introduce Ryan Quisson to all of you. So let me give you a little bit of context. Ryan and I have known each other for about a decade, but Ryan has become. We were sitting on the beach in Mexico about four years ago when Ryan was really getting an options trading, which is something that I have wanted to be good at since I was literally 11 years old. I've been. I've been. I've known about options trading since I was like. It was like the first thing that I ever researched when I started wanting to make money on my own. And I've never gotten really good at it. And I want to get really good at it. And so Ryan is the best person that I know. And so today I'm going to be asking him to fine tune my thinking on this. And if he's willing, I'm hoping to bring him back once in a while to update us and to kind of track my progress. Now, just so you know, if you are watching and you're somewhat new to my content. We are not going to be teaching options trading. There's plenty of YouTube videos and courses and stuff that you can. You can go find. Ryan has some of those if you want to look him up. But what we are going to be doing is looking at kind of where I am and what I know. And Ryan is going to be helping me fine tune from there. So, Ryan, give me a thumbs up if you are ready to come on live. All right. Good morning, my friend. How are you? Good morning.

I'm doing good. How are you?

Good to see you. Where in the world are you? You travel the world.

I'm in Denver right now hanging out with the little pup. Had a little scare this morning. Gonna have to take him to the vet, but.

Oh, no. What happened to Mojo?

So Mojo woke up with his eye completely closed. Mojo got a little bit of an eye infection, I think going. So we'll get him sorted out, though.

And let me guess, he is still happy as hell.

He is. He is. We got him all cleaned up and.

That'S a good dog.

Yeah, he's good.

That's good. Well, I hope. I hope Mojo's all right. So, Ryan, what I was hoping to do today is we picked a good day.

To look at the markets because it's been very volatile today. I mean, right now we're down 500 points on the Dow Jones. So we picked. We picked a good day to look at. To look at some stuff because normally I'd be like, what did I do wrong? So you can be my voice of reason first. Just to update. Just to update you in our last kind of in our voice memos. I really got kicked around with some trades that I might have gotten too aggressive on maybe three weeks ago or so. I took a step back and I'm looking at it with fresh eyes and I'm noticing that I'm right on my trades often, but my timing is often wrong. What I'd like to do is I'd like to walk you through how I look at trades, what my normal kind of setup is, and how I think about things. And then I'll ask you to interject and just tell me if I'm thinking about something wrong, if I'm right, and then we'll go from there. Does that work for you?

It works. Let's do it.

All right, so let me go ahead and share my screen.

And let me know when you can see.

Yep, got it.

All right, cool. So we're on big charts, and this is like the first thing that I would do is I would look at the big markets. So Dow Jones Industrial Average. My quick interpretation of this is that up until today we've had a really strong upward trend for the last five or six months and that we're at convergence on the seven day and 30 day moving average that we've kind of pulled down to almost a stopping point and I would be watching to see if we came up from this 30 day support and then popped up over the seven day and that to me would be a bullish sign. If we broke below the 30 day and below this round number of 26,000 then I would see that as a bearish sign and at least in the short term. But overall we have kind of a long term upward trend. A bullish chart with my expectation or what I'd be looking for before going long on anything would be to see if there was pressure that pushed us up above the seven day moving average giving that convergence a strong level of support. Then I would go over and look at the other markets real quick on that.

Ryan, just to interject here. So looking at the Dow and I just pulled it up on my side as well just so I can see it a little bit bigger. But if you go back eight trading days you'll see sort of this like capital upside down T right over the seven day moving average, the blue line. And you know this was sort of the first inclination that well, we need to sort of pay attention to how this broad market is going to react to any coming trading days, news, etc. And the reason is when we get that type of shape there's sort of this battle going on between the Bears and the Bulls. The Bulls are trying to push the intraday price up, the Bears are pulling it back. And what you get when you get that upside down capital T is you get sort of this inclination that well, the Bears won the day, so to speak on this bar. It is up a little bit for the day. It still causes some pause. So what I would say is moving into.

The following day it continued to move up and then it moved down below that seven day moving average. As soon as it did that I sort of move my awareness to I'm more cautiously optimistic that this is going to continue to move up, but more so that well, if it's now settling below what is a key support line, the seven day moving average, is it more likely to break back through that upside off of recent, we'll call it this or is it more likely to settle back towards a relative line of support? So in this instance it's settled back more to that relative line of support here in 26,000. So my point is that now about six bars ago when it was below the seven day moving average, I personally was looking at it as, yeah, I could still be bullish, but I wouldn't want to open a new short term trade relating to the Dow until it's back over likely that seven day moving average.

Okay, that's interesting because I entered in the trades that I'm going to show you a few trading sessions back, right as we crossed convergence here and sort of peaking up above 26,000, which to me seemed like, it seemed obvious, like I couldn't be more confident.

On that decision because it seemed like all the data suggested that. And then I felt like a genius for a few days and now I feel like an idiot. So I'm like, I'm riding that cycle. So what I'm kind of hearing you say, and correct me if I'm wrong, is that at least on this chart, had you entered into trades when I did? When you started seeing some of this resistance and the bears winning the day, that's a time for you to reevaluate your positions and tighten your stops.

Yes and no. So the broad market I like to use as sort of a guide for getting into trades. Right. The trend is the friend. I want to follow that trend. However, when I'm looking at the existing position I'm in, I'm really, really reliant on that individual chart. Right. Because at that stage, yes, the broad market might be helping it to carry. But for example, if you look at PayPal this morning or if you look at Procter and Gamble this morning, right before we got on the call, I exited Procter and Gambler because I had entered that trade yesterday and it had this really big move up and the market's pulling way back. Generally speaking, I'm not going to let that deter me from being in the trade. But if I have been in the trade for less than 24 hours and I can capture a strong ROI, I'm going to let that sort of dictate what I'm doing. So again, to clarify, broad market helps you enter individual chart is really what you're using to help you exit. If there's extenuating circumstances like today, big down day, you might, if you've got profits, you might tighten things up. If you've got quick profits, you might exit, that sort of thing.

Okay, okay, that makes sense. So it's funny you bring up Procter and Gamble because that's One of the things that I want to chat with you about today, let me walk you through some of my other analysis. So the next thing I would do is I would go over and look at the other broad markets.

So.

Said this to other folks before by the way, but Big charts, it's a free tool. It runs 15 minutes in delay like a lot of charting softwares. So if folks are wondering if they're looking at real time charting, the numbers might be slightly off.

Yeah, I keep, I keep one tab open for, for Big charts to make my decisions and then I keep my live chart open for there you go thing in the future. So, so kind of similar, my analysis is pretty similar for, for the Nasdaq where you have a very strong bullish trend. We have kind of this slowdown or like a consistent resistance around 105 but the overall market is moving, is moving up and we see this pullback which I'm going to be watching for. If we hit the 30 day moving average and bounce up back over convergence or if we come below, that would be a bearish sign for me. So it's a pretty similar analysis on that.

Yeah. So based on what I had said before relating to the Dow, Ryan, what number do you think moving into this week that I was really waiting for us to potentially open maybe a new long position. I was looking to, I mean what.

Hits me is 10 5.

Yeah, 10, 500 for sure. Possibly even the seven day moving average. Right. As we got to, you know, yesterday and today, you can see the seven day started to slope down and really kind of merged with 10,500. And so four bars back, which would have been Monday. We're back over 10,500 now. I'm feeling more comfortable. But we notice on that day that we basically gave a little love tap to the seven day which is resistance. So now at this stage to get the confirmation for me to want to open a new long position relating to the Nasdaq say the following day, I want it to continue to move up and we see that we failed to do that. So I've got to be disciplined enough to say, okay, I'm going to step back and wait another day to see if there's the opportunity or later that day.

Okay, that's interesting. So you're looking at when we kind of flirted with it. Right. If you can see it on my screen right here four days ago, right where we kind of.

Yeah, yeah.

Yeah. So on Monday I'm, you know, okay, I'm excited, I'm looking maybe. Okay, there's potential opportunity to enter new long positions. Great. But Tuesday, relating to the NASDAQ at least, I'd be hesitant to open a new long position because one, we fell back below 10,500. But two, I want the market moving in the direction in which I'm going to be entering a trade up.

Okay, that's actually really helpful to hear. Okay, so let me walk you through some of my open trades.

Sure.

And like how I made the decision to enter them. And then I'll walk you through some ones that I haven't entered. But I'm watching. So the first one that I entered.

About a week and a half ago was MasterCard. So let me walk you through my thought process here. So MasterCard trades at under MA. I entered. Right. I'm gonna zoom in.

I entered right as it popped up above 300. So right here, right here I noticed it popped up above 300 and then it confirmed above 300 the next day. So right here it popped up, came back, and then it popped up and confirmed and then it went soared right over 310 to about 312. I'm like, I am get, I'm back, baby. I am so good at this. Ryan has taught me well. And then we've come down to the seven day average and now we're kind of sliding back towards 300. And so my logic to enter it was you have kind of a double support of convergence and the round number of 300 and it popped way up. And I'm curious to see what you think that I should have done differently or if my analysis was off of it.

All right, so the first thing I'll say is, obviously everyone has their own style and personality. Some of those, you know, vary on the side of more aggressive, more conservative. Let me ask you, when you entered this position as it was going over 300 the second time, what was your initial target that you wanted Mastercard to hit that you felt like, okay, if it hit this, I would consider exiting that position?

You know, that's a good question.

From a conservative perspective, I was very sure it would hit 310. From an aggressive perspective, I expected to be more like 315, 320, because we had tested those levels in the past and I'm, and I'm looking at them right around here. As I'm saying it out loud, I know exactly what you're going to tell me. And I feel, I'm like, oh, he got me.

Okay, so let me ask you to the downside. How would you know that? Okay, it's time to cut bait and get out of this position if it dropped below 300. Okay, so if we look at this is what we would consider sort of like a pattern alteration.

Also. I'm. I'm sorry, I'm so glad you asked me this question because I'm sitting here going, I see exactly what happened in my brain now. I'm sorry to interrupt, but that's a very pointed question.

So we would call this sort of like a pattern alteration. This is a channel of sorts. There's a few things going on and I don't know if you want to pull the chart back up. If you zoom in a little bit.

You can kind of look there's from towards the middle, towards beginning at the top of this uptrend in June, which is kind of two bars, two little blocks over, you'll see that we have sort of this peak, then the next peak's a little bit lower and sort of like kind of in line a little bit sort of this sloping down type channel forming at the top and then the bottoms are all sort of in line. So here we have a converging channel where it's converging as we move to the right, getting tighter and tighter. So whenever I see something like that, we might want to look to where we might say, well, where is there some key lines of resistance to the upside? These might act as like a ceiling. And here you're defining 300. Right. There's also sort of the seven day right below and the 30 day is kind of right on the money there. Those are resistance points as well. Now the thing that you mentioned, and just to kind of go back to the beginning here, you noticed it as it broke over 300, it came back and then it confirmed the following day. Right, that's what you. Yeah, yep. But the confirmation was actually never there. So confirmation is that after it breaks out through your resistance point, it moves above that close.

I see.

So it broke out very strongly and then it came back and then it continued over 300. So technically we wouldn't call that so much a confirmation of the breakout. We could though argue and say, well, at this stage I'm going to be bullish over 300. Which would mean that, yes, I'm going to put that contingent right below. As we kind of Talked about maybe 299.50 or something like that to get you out of the trade and know that it's time to cut bait. We do that automatically so that we don't have to think about it and make some crazy Decision with emotion. Now if you go back to the chart.

If our philosophy was that then we likely would have entered a few days before, but we didn't, which is okay because then you would have been knocked out the following day because it went down then you did enter. Now here's where it sort of is like, okay, I'm interested in MasterCard. I'm hoping it goes to 310. It blasts through 310 on the day after you enter. Now you're, you're again thinking you're a genius. All these sort of things, right? Where in reality it's difficult, but it's sort of one of those things where you sort of need to be indifferent about the emotion of it, but thinking just more of like acknowledging like, oh, okay, that's interesting. It broke right through 310 much more easily than I thought because look, in June it struggled with 310 towards the mid and latter part of the month. You know, early in the month it broke through 310. But what eventually happened is it fell back below. So now logic might tell us, well, we have a reasonable amount of profit. I don't know the exact amount, but I would guesstimate you had probably 15 to 20% or so.

Oh, yeah.

If not more. And so now at this stage we have to logically think, well, does it make sense for me to still exit this trade if it goes below 300 or should I do something else to protect my existing profit?

Now you know what's going through my head as you're telling me this is you say kind of over and over again in your trainings that you should treat this like a business, which this is probably the first time I'm really getting what you mean because my brain has seen, Well, I mean, Previous highs of Mastercard are 347. Markets are bullish. We're heading back to highs. This is a good, this is a good trade for me to stay in. But if I was looking at it more like a business, then I would have been much. I would have been perfectly happy taking 15 in a day, taking that money and putting it back into the next, the next product. Like if I think about it like a physical product, I would just take my profits and then I would put them into the next product that I would do. I wouldn't try to ride that to the highest price that I could sell it for. So this is just having, I'm having a brain gasm, as we call it.

Yeah. One of the things to think about is, right, you're trying to Capture in this instance, upside appreciation in the short term, we don't need to get the absolute top of that, right? If we got the top of it, great. But what I found is that there's safety sort of in that middle. And because we're using options with nearer term expirations, and when I say that usually it's, you know, 60, 90 days out, sometimes it could be a little bit longer, but we, we know that there's this magnification in movement, right. So here, when you see this movement and, and again, just to kind of get a little bit nitty gritty for you, especially if you looked at it and I don't know when this started to happen on the trade, but you would have noticed it by the end of the day. Most certainly is. You see how it reached its intraday high and then started to pull back, Right. If you look at the actual close that it had on that day, going back to sort of June, right, where it was over 310, we can see some very similar closes. And they tell you part of the story, right? They tell you that is 310 really support. And that's what you need to be thinking about now. Because now that it's over 310, you need to think, can it stay over 310? We, we knew that it was resistance. And for everybody who doesn't know, resistance becomes support. Think of it like if you jumped through your roof and then, you know, stepped out of the way of the hole. You're now standing on a floor, right. So the ceiling becomes the floor. And in this instance, I would be hesitant to believe that that floor was very sturdy. Right. So what I personally would have done is I would have now taken my contingent that I had placed below 300 to get me out to minimize loss, and I would put it right below 310. Something like 309 53,975, etc. And that way now I'm guaranteed to basically lock in a profit unless it does something crazy and kind of gaps down over my stop or something. But now I'm sort of securing that now if it continues to just rise, I'm still in a great position. I can adjust that exit strategy as it needs to be dictated by this individual chart. Not so much worrying about the broad market. Does that make sense?

Yeah, it, it makes total sense. So that I, I can see my mental error now. So, so moving forward, I mean, I'm still in the trade.

Yep.

And we're, we're like really at. Right at this Kind of convergence point. So I'm trying to analyze my brain. Like what's the best way for me to move forward from this trade. We're actually down quite a bit today. So for me like we're hitting right at this, this support of the 30 day average. I'm kind of back to where I began in the trade of watching this important level of 300.

Is there a different way for me to analyze what to do at this point in in the trade?

So what do you notice about 310 at this stage?

About 310? Well, what I noticed about 310 is that it's a really. It's a very clear level of resistance.

Yes.

So now bounced off it several times.

Yeah. Now it's become clear resistance. Right before the day before you entered, our expectation was that it could be right. And then the following day it smashed through that resistance. Right. So it wasn't really that strong of resistance for us. But now literally the last five days, counting today, it has acted as resistance. The day prior, which was Thursday of last week.

Right.

Or Wednesday last week it was support. Right. Because it was hanging on to the floor of 310. So now it's becoming stronger and stronger. So should that make us feel like, oh, we're in a pretty good spot, it could easily break through 310?

No, I look at that as like if I were lucky enough to test 310 again, it would probably hit it and come back. It's really strong resistance now.

Right now we were a little more concerned about 310. You know, clearly the seven day isn't acting as support because it closed over the seven day yesterday and just kind of fell right back through A few days ago it closed looks like on the seven day and then fell through the following day. Right. So we have to kind of now think about like if it approached 310 and I wanted to stay in the trade right now we'd have to think, well, if it approached it, I'd probably want to capitalize on that and maybe exit. You know, oftentimes what I advise, you know, my, myself as I kind of, I like to think sometimes as if if I'm in a trade and I'm pitching it to a board of advisors and I say, hey, you know, you guys gave me $100 million to trade on behalf of this endowment. We're in MasterCard right now. I totally screwed up. But don't worry, I think it's going to go up to 310 again and we'll be able to get out and salvage it. Right. So I try and walk through that and, and oftentimes I use this kind of silly example is like in our brains we're hoping that it's going to do that and it did it earlier today and we likely should have gotten out. And it did it yesterday and we likely should have gotten out. But if we don't get out, how much more are we willing to risk? Right, right. So to the downside, you might even be, you're probably a little bit negative right now. But to the downside, we do have the 30 day line of support, we do have 300. But you have to know when it's time to cut bait because you're now in a trade that I would classify as higher risk because you should have exited but you didn't and now you know that and so it becomes a little bit more emotionally magnified and emotion is our worst enemy when it comes to.

Makes sense. All right, so let's move on to the next trade. So the next one that I entered was T mobile. Okay.

So T mobile.

I entered this, I watched this very. Here's my analysis. It has this really nice. If, even if we go back for before Corona, there's a really strong bullish trend on T mobile and T mobile has.

It, it broke over a hundred back here at like the beginning of June. And I watched it kind of flatten out and sell right around 105. And I started really paying attention to it when this convergence happened maybe this is about two weeks ago. So let me zoom in here. So about two weeks ago I saw a convergence happen and then I saw it break up here and confirm. And that's where I entered. So, so I entered right as it crossed this 105 where the 30 day and seven day came together. And it's been, it's been flat since. So I was betting on kind of a breakout pattern with a target of 110 because this is where we had gone before, but it's been flat. So what, what do you observe in my, in my brain on this one?

Sure. So.

First what I'll say is let me ask you some of these same questions. So where were you hoping that it would go?

110. Okay.

Where were you thinking? Okay, this is a breakout. So define to me the resistance that you saw. Where was the Resistance?

Was it 105? 106.

Well I see, I see support at 105.

Okay, so support. Another way of saying that is resistance. So in this instance the support is Resistance to the downside. But resistance to the upside was. What was it? 105, the 30 day, seven day, another number.

Well, I think what you're telling me is that there's actually resistance at 106.

Yes. So I think there's a few lines of resistance here. Right. So if you.

I'm sorry, here's what I'm realizing as you ask me this question based on what we just discussed in MasterCard. You're looking a lot tighter of a window than I'm looking. Like, you're looking at, like you're basically like, Ryan, this has hit these numbers previously and not broken out. Correct. And, and so this now is resistance and it's slowing down in its, in its chart. I had been looking previously at kind of this momentum and basing the story off of this and thinking, all right, great, we're finally breaking out under this channel. But you're, but, but you're looking at a much smaller window for recent activity, which is something that I didn't, didn't realize about your philosophy.

So it's all part of the greater story. Right. Like, so you know this, you're looking at act one, right. And you're sort of skipping act two. Act two is telling us the finer point of the story. Right. As the plot thickens, so to speak. And here with T Mobile, what we see is. When you're looking at it, what we see is we see some things that to me would give me pause. Right. So end of June, it's coming off of a strong movement. It reaches 110 and then it pulls right back towards 105. And then as it moving into July, it's sort of moving sideways. It's flirting with 105. It's going up towards 106. If you actually move your chart, Ryan, to let's say like a one month chart.

Let's go back here.

And so if you look at this and you look at the day that you entered.

Yeah, right here.

So if you look at that day and you think what I would ask myself is, how confident do I feel that this is going to now move towards 110? And now with sort of this tighter scope, we can start to see that there may be a few roadblocks along the way. Right. And that's okay.

Sometimes this makes total sense now. It makes obvious total sense when you put it like that. Where.

I hadn't realized that what you're really doing is trading a small snapshot of a longer story, whereas I had been more looking at the overall Story and betting on kind of where we were in the wave. And you're looking much closer at the wave for those, for those moves. Is that, is that a fair interpretation of what you're saying?

Yeah. So think of it as like as a long term investor. Right. We're going to think about. All right. I believe that the stock market's going to keep moving up so I'm going to buy Vanguard Total Index and I'm just going to let it move up over time. As a short term investor, what we're trying to do is we're trying to capitalize on that near term appreciation or depreciation in the underlying security. Right. So to do that we want to get, I like to look at the six month chart to get the broad perspective of what's happening. But then when we're trying to capitalize on that short term appreciation, we need to see what's happening recently because the recent activity is sort of more important than what happened six months ago or six years ago. Right. So we need to use almost, it's almost, it's. I don't like to say it this way but think of it almost as like a recency bias is helping us determine what to do moving forward. We can't let the fact that Apple's at new highs or something like that this year to say, oh, we just want to go long. Right. We need to knew what's happening to kind of determine that. And so I can give you some examples of some things that recently, recently, you know, have a strong trend, maybe started to consolidate a little bit since you've been playing sort of these breakouts and they're looking now we would say, okay, I'm looking to see if this can actually break out.

Well before you do that, let's, let's do one more. Okay, let's do one more. Because I did a trade live a week, a week ago I placed a trade live on one of these coffee hangouts.

Can you, before you pull that chart up, can you look at the 3 months T mobile again? Yes. And when you look at this, one of the things that I want you to think about is, you know, one of my mentors years ago said clarity precedes mastery. Right. And it's more of like a personal development thing but it applies directly here. So when you look for a breakout, clarity is what you're really looking for. Right. Was it a clear, clean cut breakout? So when you look at the day that you entered it broke through the seven day, it broke through 105. But did it break over resistance?

Right.

No, it fell right into it. Right.

Like looking at it more in the macro, the resistance would have been 110 before entering that trade.

Yeah, I mean you could have maybe went over once.106,106.50 or something like that. But the problem there is that you're, you're, you know that 110 is likely going to be resistant now. It's getting pretty close. Yeah.

Okay, that's really helpful. All right, so then the one that I entered in live last week was Home Depot. Okay, so let me give you my analysis on Home Depot. All right, so Home Depot is on my, has been on my watch list for.

For a good like two, three months. And I, and I watched it go through this pattern of breaking through a new high above 240 a couple months ago, hitting resistance at 255, pottering around for a while. And I, and I watched it daily as it did this, waiting to see if, when convergence happened, if it would break up and confirm above new hots. Okay, so let me zoom in. This is the three month chart. On the three month chart I entered, I, I waited for, I entered right here. So a week ago, right. As it moved across 260 and then started to show some momentum up and it did with a target of 270 and then that, so that was two days ago. Based on the context of this conversation, I, I probably should have cut at 270, hit my target so I should take my profits and get out. I did not. And so now we're back down here. So I'd like to know if my thought process is in alignment with how you look at things and, or if you would have done something different.

All right, so move back to a six month chart. Sure.

Okay.

And sort of just.

Zoom in with your. Yeah, there we go.

And so you know, this is actually one that I covered with my weekly group of folks that, that I do a training with. So if you look.

We sort of have another converging channel here. So if you look at the high in June and then sort of the next high kind of in June here at the peak, the closes and then into July we could draw a line down across those and we get basically. And then across the bottoms as well. See how we have lower highs and higher lows. We now get this converging channel. So you can then look for a breakout over and through the resistance of this converging channel. That breakout occurred on that big day where it moved up and closed over 255.

I see.

And then so this is a, in my opinion a pretty good breakout day. Now what I like to use as sort of secondary assistance with a breakout is volume. And I believe you have it. If you just scroll down a little bit, you'll see that volume was pretty darn high on that day.

Right over here.

Yeah. And so now if you go back up, if we were looking for confirmation of the. The breakout, meaning that we didn't want to enter on the breakout day, which is totally fine to enter, it just has a higher degree of risk. But if we wanted that confirmation it would have been the following day and we could have gone long after it started moving up. And then where do you think we'd want to maybe put our contingent at that stage? If we entered long that day, I.

Would have said 255.

Yeah. So we could put it just below 255. That way if it falls below 255 which has been acting as resistance and sort of former support, we can get out of that position and not have to worry about it kind of falling back into the converging channel which is a fair bit away from us. Right. So we see that it then started to kind of putter around and continue up to me, if you entered, when we just talked about the day to have gotten out would have been either Tuesday or Wednesday as it really started to struggle and appear to be dropping below that seven day moving average.

So that's how I would have portrayed it. If you go into a tighter window, Ryan, where we can see that 260 is resistant.

And I say that with context because.

I don't want to say you missed the trade, but I think you missed the earlier opportunity. And then when you went for this opportunity it sort of changes a little bit. You can certainly look for 270. Right. You, you. It closed over 260 and then it continued up. And did you enter on the day that it continued or the day that it went over?

The day that it continued.

Okay, cool. So. So then again, you could have used 270. It didn't actually looks like it hit 270. But what I would have been starting to get a little bit worried about was yesterday. So look at yesterday's bar and notice the shape of the bar we have again sort of that upside down T. And it's also falling below a line of support. So that would give me some pause. You know, if you're.

This is a little bit nitty gritty, but if we were way more bullish than we are, say, right now. You know, if this was 2017 or something, I might not be that concerned. But in this instance, you know, it's almost as if you need to think about, like, I need to have a good reason to stay in and a. It doesn't need to be that great of a reason to get out. Right.

That's what you call, like, the perfect setup where you're looking for a mismatch in the risk reward.

Yes. Yeah. Yeah. And so here, now I'm kind of thinking like, okay, is this going to hang on? And you could still be using 260 and you could say, like, okay, I'm going to use 260 here as sort of my contingent exit. And it's either going to do it or it's not. And, you know, we don't know yet what's going to happen. The bar right now is sort of promising in that it's, you know, the bears tried to pull it down, but the bulls are certainly pushing it back up. So, you know, even with the market maybe moving down, this may try and continue to move up, which several stocks obviously have. Have done really well today, at least when I looked at them prior to, to jumping on here.

All right, so this is so helpful, Ryan. Yeah. I, I think I have called you the Jordan Peterson of investing. You're just, you're just so it, like, it's like you do personal development through the lens of the stock market. It's beautiful.

I mean, honestly, I think it, it really does all tie together. And I think when you, you actually understand yourself and your, your, Your own nuance, right. It makes it easier to trade. Like, if I know that I'm more of a conservative person or more of an emotional person or, you know, more aggressive in my general nature, then I should adapt my trading style to that. I shouldn't try and, you know, resist that. And that just means that we need to pay closer attention to not always how we get in, but also how we get out. I think that dramatically people.

Overestimate the value of knowing how to get in and dramatically underestimate the value of knowing how to get out. Because you, you don't make money on how you enter the trade. You make money when you exit. They can help, right? It could certainly help, but unless you get out of there, like, you're not making anything, you know?

Yeah. All right, so let's look at a couple that I'm watching right now. These aren't active trades that I'm doing, but they're ones that I have been tracking and look like they might have entry points right now. So you brought, we'll save Procter and Gamble here for the end because it was volatile today. I want to look at, I haven't looked at this yet is Wayfair. Okay, so Wayfair has been super volatile the last, the last few weeks, especially with all the news that has gone on around Wayfair. But let me give you my sniff chart on Wayfair. What I love about Wayfair is, I mean look at, look at this beautiful trend. I mean there's, there, I don't know that there could be a more beautiful upward Trend. I mean six months we've gone from 50 to 250. This is just absolutely beautiful.

I could show you if you want.

There's more, there's better ones.

I can show you a more beautiful trend.

Okay.

All right.

Well, looking at this one, you know, we, we. I'm looking at a possible entry point of right around 225. So, so we see this from, from a six month chart. We see it kind of slowing down around 225 and I would be looking to enter if it broke up above 225. So that happened a few trading days ago. So here it broke kind of up above 220 and came back down to the seven day average. And then it's had this big gap up across 240 and now to 245 today. So my, my question is, is there a, is, is there a clear point in a chart like this that is an entry point for me because I'm sitting here going like it makes sense the, the broader story but I don't see a clear sign of, of when to enter. This big gap up here happened after a pullback of it settling at the seven day moving average. And so I missed this gap up a couple days ago. Is there a way for me to be able to identify that a little bit better so that I don't miss those moves?

Yeah, for sure, for sure. Okay. So the first thing you want to do is you want to, you know, you got to close your eyes, channel your psychic ability.

Just know that it's, you know, it's all going to be okay.

But seriously, here's how I look at this one. So in July, what do you notice? And I, I'm sort of noticing a trend. By the way, with you, I'll lead you into it. What do you notice about 225?

I, I notice right around 225 we have resistance and then it tends to hit that resistance and come down. But we've tested it a couple of times. I also noticed that it's a new high based on at least this chart.

And so it would make sense that if it broke above that, we'd be testing new ground to run up.

Okay, now switch your chart to one month.

Okay.

Okay, now what do you notice about 2:30?

Well, in. Earlier in the month, 230 was really hard resistance.

Yep.

We would flirt with it. We were kind of trying it and then came back down. We broke up above it one time and came right back down. And then in recent days, we were trying to flirt with it again.

Okay, now Based on this one month chart, what looks more problematic? 225. 230.

What looks more problematic or more.

We'll call it a stronger ceiling. What looks like a stronger ceiling?

230 looks like a stronger ceiling.

Yeah. Okay, good. So 225, which seems to be where you were focused when we were looking at the wider chart. It's an important number. But again, looking at sort of like a more nuanced thing here, we need to actually define, well, where is the true resistance that I should be worried about? When I look at this, it jumps out to me, you know, abundantly clear. 230. Right. Maybe I want it to get back over 225, but I need it to be over 230. And we can see that because if you go from left to right and look at the high closes over 225. Or we'll just call it here 220. You got 1, 2, 3, 4th one. If you go, you bring your mouse back one, you can see that it's like right below 230. And then we've got this resistance forming. And then we have sort of this high close that looks to be five or six days later, right on that 230 mark from this chart. And then it drops back the next day. But if you notice four bars back. So Monday it actually closed over 230.

Right. Right here.

Right. So that's the day it closed over 230. That's the day that I would have said, this is interesting. Now we're over 225. We're over the seven day. But we're also over these previous highs that were over 225 and right around that 230 mark. Right. Ideally on that day. So on Monday, we would have liked to see an increase in volume. We didn't get that. But what I noticed is that volume is trending up. Right. So the four days, we have four days in a row where it's like volume higher, higher, higher. Right. This is still fairly reasonable. So now I would have said I want it to continue, I want it to confirm over 230. And we didn't get it the next day, so Tuesday, but we did get it yesterday. So yesterday you arguably could have said, I want to go long, Wayfair, and use my initial contingent below 230. That's how I would have interpreted it.

I see. So this to me, I look at it as, ah, crap, we missed it. And you're saying, no, we didn't miss it at all. This is finally the sign that I was looking for.

Yeah, I would say, you know that for sure. You could have gone long yesterday. For some it would have been too aggressive. It would have moved, you know, in their mind a little bit too quick. But looking at Wayfair's chart, this is sort of par for the course. It doesn't move in tight slow increments. Right. It often moves a fair amount where the opening price is much further above the closing price from the day prior.

Right.

So this to me is sort of. This chart itself has a little bit more of an aggressive nature to it. So I. Playing into that and I think that it would have been fair to say, okay, I'm going to go long. Here's my reason to get out. If it busts through 240, if it busts through 250, I'm going to keep going and I'll just adjust it as I see fit.

Okay. This makes this, this makes sense. So do you see anything, do you see this as like the way I interpret this now is 250 would be possible resistance. We haven't tested that level before. But I don't see a reason to enter this trade right now though, since the, the, the right entry point would have been a couple days ago. I would be watching this to see how it settled before trying to play this. Do you see to enter this or do you, do you agree with that?

I agree we've missed the trade. You know, we're now the, the ferry has gone out 300ft and we're trying to long jump onto it. You know, we're probably not going to make it.

Right.

I mean that's, that's the like temptation I want to fall into. Yeah, like that, like you're seeing that My, the temptation I do fall into is that I, I'm trying to predict breakouts. The other temptation that I'M at least smart enough to catch is not jumping to the ferry. So I at least, at least know that tendency.

Yeah. So if you pull the chart back up. Yeah. Right. Now based on what we see within six months, we don't know if 250 is going to be resistance. Right. What we do know though from fairly recent times is that round numbers have been resistance.

Yeah.

So we may consider that. And I'm not seeing the chart just yet by the way, but when we, when we don't know for sure, we can often give ourselves greater perspective. So let's look at a three year chart. So if you switch this to three years, this is going to give us a wider perspective.

And you notice that it has not been up towards 250 yet. Okay. But what else might you notice now about its recent trend?

I, I, I, I mean what strikes me is that it seems to be slowing just a bit. That we had this like rocket launch and now it seems to be slowing just a little bit, but that it also kind of goes in these waves.

Yeah. So based on the greater story that we're looking at over the course of the last 36 months, what we have seen in recent times is this look normal, does it look exaggerated, does it look underperforming? What do you think?

It looks hugely exaggerated.

Right.

So I would, I would suggest that there's enough like changes in the world to warrant that and changes in the company to warrant that. But it's from a, from a technical analysis perspective, it's hugely, hugely exaggerated.

So pull back to a six month chart.

Okay. Okay. So now, thank you so much for doing this.

So now that we have that wider perspective because you don't see that when you look at this. Right. You do see.

But now we have to sort of think.

Based on even the last two and a half months of movement here, we're starting to see that the chart is getting a little tired. Right. Some might say it's getting a little long in the tooth. Right. It's going to likely could consolidate and digest the, the fact that literally it's gone from 25, you know, to almost 250 in a matter of just a few months. Right. So as a short term trader, someone who's trying to capitalize on near, you know, near appreciation, near term appreciation, excuse me, is we have to sort of think about that. Is there opportunity for it to go to 250 and beyond? Yeah, of course. But we know sort of intuitively that if something moves by a multiple of 10, you know, factor of 10, there's going to be at some point people taking profit. Right. If you bought this stock at 25 and you're still in it, I don't know what you're thinking. I mean everyone has their own ideas, right? But the ROI that you just made in a matter of a few months is, you know, insane. Right. Like for any long term investor. Right. So there are people who might have bought any time in the last three months, right. For the most part that have from a percentage standpoint, a pretty ridiculous roi. So we have to sort of think about that. Right. Because this, the price is dictated by buyers and sellers. And so we need to decide is it worth that potential risk for us here? I think it would have been fine to enter. We've got opportunity. I'm adding this added context because we don't know that 250 will be resistance or it won't. But if I'm believing in my brain that this is going to go to 300, I may be a little bit delusional in the fact that at some stage people will take profits and sell and that will drive price back. And we know that that has to come at some stage here and we're already starting to see that around that 225 mark.

This makes total sense. All right, let's, let's finish with Procter and Gamble since you brought it up first and I brought this up on a live on Tuesday's Live as something that I was watching, watching and I said I was going to hold off until you and I chatted.

But here's, here's my analysis of Procter and Gamble. Okay? So I've, I've been watching this. Procter and Gamble is like one of the stocks I'm more familiar with from like from a long term perspective. So I know that 125 has been a long standing resistance point for Procter and Gamble. I mean if we pull this from a, from a three year chart.

We can see that 120, 125 right here historically is a new high. So when I see it flirting with this new high, I, I pay attention now. It's tested this a couple times in the last six months. I think this is just pre Covid. 125 comes down, we test it again and we come back down and now we see it trying to break out again. And so a couple of days ago I said, I said in one of these coffee hangouts that I was watching for it to break up above 126 and that if it broke above 126. I would consider going long on it. And so it did that a couple trading sessions ago where. Right, so right here it popped up around right above one actually it was more here then came down and then popped above it. And I was considering going long right here and I was like oh, let me run this trade by Ryan when we talk in two days. And it seems that we have now that that I at least was right on paper and popped up above 14 130. I still see this as a bullish sign where 130 is a. Is is a breakout territory for me for Proctor and gamble since 125 has been such a consistent place of resistance for so long. So I would still consider going long at 130 for Proctor and Gamble. But today is obviously a big breakout day, especially when the rest of the market is to the negative. So.

How do you analyze my thought process on this one?

Yeah. So if you go back to a six month chart,125.120 definitely has been a point of struggle for Procter and Gamble. You can see towards the far left of the chart. When it got above it it really kind of didn't do much. Consolidated used it as support for a little bit, fell back through, got back above kind of support and then we had sort of this oscillation in March and then it started to rebound. And notice that when it tried to do sort of this staggered V shaped recovery Here it hit 125ish and pulled.

Right back right back here in March. April whenever this was April.

Right, right. And then it pulled back strongly again. There were some opportunities to trade it off this. But we'll skip those for now. Notice then 120 really became starting at sticking point opportunity earlier in the month to trade over 120 to 125. But then 125 again started to become that sticking point. And we have what I just like to call little false breakouts. Right. It would close over 125 which would be a breakout over resistance and then it would just fall back down. Right. Yeah. And then we started to define a new recent resistance point.125 was the greater part of our resistance. But then we had this consolidation just above and it wasn't until three bars back on Tuesday that it truly broke those resistance points.

Points. Okay. Okay. Yeah.

And so that to me was like, okay, it's now broken these resistance points. And so yesterday, Wednesday, that's when I was looking for confirmation. Could it confirm? And it did. So that's when I personally went long on Procter and Gamble and Ryan. Let me ask you this. Where do you think maybe my initial target was or hopes?

I would have said your initial would have been 130.

Okay, fair, fair. And to the downside, what do you think?

125, which is a pretty tight trade.

Okay. So let me massage and optimize this a little bit to give you my perspective on what I actually was looking at. So 130. Yes, I was looking at 130. However, because we're pretty close to 130, my hope is that it's actually going to break through 130 and then if it were to really fall back, then I wouldn't want to be in that trade anymore. To the downside, if I'm using 130, 125 is too far away. It gives me a far greater degree of risk than my potential upside if I'm capped at 130. So I don't like that. I prefer maybe the seven day. That could be interesting. But rather than the seven day, if you go back all the way to the left here, do you see sort of that upside down T like six trading days into the this right here? Nope, far left, far left.

Far left. Like all the way over here.

Yep. You see that upside down T right there where there was resistance?

Yeah.

If you come back, you use that same line and drew and you just kind of drew a line right across.

Yeah, yeah. So about one basically are matching. Okay. Okay. Yeah. It's a seven day average.

It's right basically on the seven day it's kind of this close four bars back. It's like right in that area. And so that's really what I'm using as the base. Former resistance becomes support. Right. Ceiling from the floor. And so in this instance that's what I was looking at now obviously like, you know, this morning I woke up, I, you know, dealt with the whole mojo eye closed situation. Got that taken care of, took them out for a walk, got back, realized it was almost 8 o' clock and I needed to jump on here. So yeah, the charts it had, it had gapped up. Right. It had moved really strongly. The market was down like 500 points. The other broad markets were down as well. And that's when I decided to say, you know what this did what I wanted it to do. It did it with such strong exuberance. It's challenging for me to now say, okay, I'm going to put a 10% trailing stop or I'm going to put a 15% trailing stop, or if it hits 129, I'm going to get out of the trade.

And. And let it go. Right. You. You have to make the decision of saying how much of my existing profit am I willing to risk for further gain? In this instance, I was in the trade for one day. I didn't calculate the exact percentage because I just put in a market order and literally jumped on here. But I'm. I'm guesstimating 15, 20% profit one day. I'm not. It's. I'm not willing to chase further profit with the current environment. It's moving in the opposite of what the broad market's doing. But that doesn't mean that it can't gap down tomorrow or pull all the way back. So I'm going to play it more conservatively, even though I'm a little bit more aggressive, generally speaking, to just capture that profit and be done with it.

Do you have a duration or a percentage target that you look for? I mean, when you enter a trade, do you have, like, are you usually looking for 20% or 10% or does it depend on what the support resistance.

It depends on the chart, right? It really depends on the chart. What in every chart moves differently. And so, like, if you want to pull up gold real quick, gld, this chart has. I mean, this talk about irrational exuberance. Like, you know, gold has just been going parabolic, hitting new highs. GLD is an ETF that follows gold. And you can see here, I played this as a breakout over 170. I look a lot smarter than maybe I am. You know, it went crazy. Right. But this is the power of options. Right? So if you look at.

Let's see, it's. If you start. Look at 180 and then go two bars back.

You know, so down a.

Little further right here. Right.

So I ended up getting out on that day where it went high, and then it started to pull back a little bit. And you know, the stock itself, this underlying ETF, it only moved maybe say $6. Right. Percentage of 170. Not even 5%. Right. Like, it's a very, very small amount, but I had almost 150% ROI.

Oh, my goodness. Because there was so much movement in the option. Yeah.

It was so fast and so quick that it moved. And the option itself, it's. They're very magnified. They move quickly. And there's some that just do that. Like Silver does that as well. Coca Cola often does that.

So when you see that the More speculative stocks, right? Tesla, Amazon, sometimes when they're, when they're.

More speculative, like say a Tesla, you find the option premiums are a lot higher that some of that volatility and speculation is built into the price of the premium. But in this instance, you know, I, I'm bringing this up because it's more extreme example to pg, but I have to now make the decision of, like, how much of that, say, 150% ROI? And it was a little lower than that. I'm just using the round number here. Am I willing to risk to get what, 200?

Yeah, right.

Like, am I willing to risk 50 of my ROI for that? And you have to ask yourself those questions and realize that. All right, let's come back to reality. I entered this trade four days ago, and I'm up this mount. Right. So I, I don't like to set a target. I don't like to say I need it to be 30, I need it to be 20, or what have you to the upside, because you'll often find yourself either getting out too soon or, oh, I'm at, I'm at 18%. If it just goes up another 2 cents, I'll be able to get my 20 and I'll get out. And then you make stupid decisions. The only time I'm really considering that percentage is to the downside. I never want it to go below 50%. That's the mark of a losing trade. And.

Oftentimes it's usually the stop is set much tighter than that.

Yeah, makes sense. Well, Ryan, you're getting a really good snapshot of what my thinking has been up to this point. I really want to get good at this over the next six to 12 months. Where do you think I need to practice or adjust my expectations for the next few months as I continue to practice along with your philosophy?

So I, I always look at, you know, trading. It's an optimization business. Right. You're not. The ideas and concepts are the same ones that I do today that I did back in 2003, 2004.

Right.

There's maybe slight nuances as I've learned in advance, but same concept holds true. So what you need to do is you need to become more familiar with the style and the story. So for me, I focus primarily on three styles. Right. The primary one we've looked at here is pattern alteration, also known as, say, a channel breakout. So for you, one thing that I would recommend is sort of stepping back, really focusing on that story and understanding the nuance of that story. You can Use the historical data that you have available to you. Right. So if you've been actively making trades, winners or losers, go back and look at that setup, look at that entry, go more nuanced, take the information that you've kind of realized today and say oh hey, I got a profit on AT&T or whatever. But was it luck or was the strategy sound? And where might have you misstepped and how could you optimize that moving forward? And then when you look at any individual.

Pattern alteration in this instance, that story moving forward, just pay attention to those key points. Use the greater picture to give you sort of advice. But then look at more of the nuance. And I would highly, highly encourage based on like T Mobile and some of the other charts is look for greater clarity. Right. So I'll just, let me just look.

At this real quick.

This one chart. If you look at ABMD, for example.

ABMD.

Yep. A BioMed.

Okay.

Yep. And I just want to show you what I mean by clarity. So what resistance point stands out to you on a biomed right now?

300 is a big one.

Yeah.

So and it was 250. Right.

So it's abundantly clear that 300 is currently resistance. Right. So based on like the breaking out pattern, if we got a close over 300 with good volume, we had a continuation. The options were good, they met our position sizing or we wanted to trade it on paper we could arguably say that ceiling will become a floor. Right. It, it is so crystal clear it's hard to misinterpret. Right. Versus T Mobile. It was a bit more wishy washy. We're kind of thinking this, but there's also these other points. Right. This is a better story to kind of as you're getting your, your, your beak wet so to speak with the strategies and it's better and easier if you try and find stuff that meets the requirement where it's like undoubtedly. So you know, does that make sense?

Yes, totally.

And I'll show you one more just offhand. Etfc, E Trade Financial.

And this was one that it has come and gone. But again if you look at 50, do you see how 50 in June and into early July clearly was defining the top end of the channel?

Yes.

And then it finally broke out of that channel and clearly made its way towards 55 which would have been an easy target for us to get out. Right? Yes. Again, clarity. Right. Always think clarity precedes mastery. And to me I would say the more you can kind of look to recognize those clear Movements, the easier it'll start to, you know, click. And as it becomes easier for it to click, the more nuanced ones will start to fall together as well. Yep.

This, this makes sense.

Cool.

Makes sense. Well, dude, I could talk to you all day. This is so much fun. Like, I, I really, I don't mean to repeat myself, but you, you told, you called me out once. You're like, you're trading like you have something to prove.

Yeah.

And, and the like chip on my shoulder thing I have to prove is I've.

So long.

Right.

That, that I feel like I should get it by now. It's like part of me is like I should be better at this by now because I know I, I know the language. I mean, you told me once, like I don't have that much left to teach you. Like, you're like, you know all the terms, like, you know all the patterns. And so that's the. I just, I really want to be good at it. And so this is so helpful for the fine tuning.

Yeah. Just think about it this way, right? If knowledge was all you needed, everyone would have six packs, be thin and be super wealthy. Right. But it's, it's applied, we have to the application of it and it's so easy in anything in life. Right. Where we could kind of start to skew the application side of it. And so what I can say, and you know, what I teach my students, is just take impeccable notes and just document, document, document. And that enables you to optimize. If you don't have the data to be able to come back to see what you did and why you did it, then it's incredibly difficult for you to optimize into the future. If you do have that data, you become this optimization machine basically. And you constantly using everything that you have to get better and better and better. By the way, if you can trade in a more uncertain and more volatile market, which for some people it's easier, some people it's a little bit harder. When you get a clear defined trend, it becomes so much simpler. And I mean, I know we've been going for a long time. If you want me to show you what I mean by that clear defined trend and a, and a great example of an uptrend like I was talking about. I can show you one last chart here.

Let's do one more and then let's save the rest of the good stuff for our next chat.

Sounds good. So pull up what you got. Chicago Board of Exchange, cboe.

Cboe.

And pull Up a four year chart.

By the way, CBOE arguably gave a put entry confirmation this week, but that's a story for another day. Look at the sort of far left. You see that uptrend right there? That really, really, really strong uptrend? Yep. During that time there were several, several opportunities to trade. And this is where, because again, to give greater context during that abundantly strong trading period, my horizon of how long I was in a trade was extended to oftentimes three, four weeks to three, four months, even longer. So I was opening positions much further out than I am in this current environment. But during that time I would put on several option trades. Like I had many going on CBOE, some of them generating nearly 400% ROI. And literally I would get the confirmation, I would use the seven day. But as I gained more and more and more profit I would just then put a trailing stop 20%, 30% and let it run. Because after I got 100% profit, the market was so strong there was no inclination for me to potentially get out that I had adjusted how I traded versus gold. It was just sort of parabolic here. Everything was so strong that the bias was really about buying and being bullish. So I looked at that and let the, you know, basically let the wave take me. I was always protected, but I was willing to risk 20 to 30% for further gain. And that took me from say 100 on some trades to 340% before I got stopped out and stuff like that. So my point is those types of markets will come again and they'll come, you know, to the upside and they'll come where there's a strong, you know, bearish descent as well.

And there's more certainty in the market, there's more clarity in the trends, whereas right now it's more uncertain and unclear. Is that what you mean?

Think about it as their consensus, right? There's a consensus that the market is bullish right now. The market may be bullish, but if you look at it, there's there, there's so many people saying that they don't understand why would the market be moving so strongly up and some stocks hitting new highs when our GDP is, when, you know, we're having problems with a lot of countries, you know, when, you know, more and more unemployment is happening. Like last week, you know, unemployment numbers rose week to week for the first time since March when they're having to do new stimulus because they're, you know, they thought they could end it, but it's not been enough time. All these Other problems. And yet we have the market moving stronger and stronger and stronger. Well, you have to understand some of that macro a little bit, in my opinion. But it's not. Again, we don't need to go down this rabbit hole. But to me that means that there isn't a strong consensus that like, oh yeah, we're, we're outlandishly bullish right now. Where right now there's people that, yeah, we're bullish. There's other people going like, why the heck are we not, you know, moving back and pulling back, you know, and there's a few reasons, but we'll get into that another time.

So you mentioned that it gave a clear put signal. I just want to see how my analysis is.

Sure.

So 100 is clear resistance previously and since we've dropped below 90, it seems like that is clear resistance now. And so based on that.

It seems like that that put signal of from 90 to 80 is, is what you're seeing and closer, it looks like there was confirmation below 90 just today. And so that is, is that what you're seeing is the clear put signal.

All right, so I'll walk you through it. So there was support at 90, also known as resistance to the downside. We have a sloping trend to the downside. The 30 day moving average. The CBOE doesn't trade on the broad market, so we don't need to worry about that. We're just using the chart individually. So five bars back last Friday it closed below 90. So that was a breakout through resistance to the down. And then Monday was confirmation to the downside for that put. You could then set your contingent at what number do you think, Brian?

My Contingent is at 90.

Yep, yep. So probably like 90 25, because you might want to, you might be okay if it just goes a little bit over 90, but you don't certainly want it to go too far because that's going to mean it's back over in this instance, 90 is our support. So it would be back over that, which means that's a breakthrough resistance again. Now it's sort of moving a little bit sideways. So we might even use the seven day or something like that. Now personally, I didn't trade this or anything like that. I was just kind of giving some context that yeah, it did in fact give this sort of setup. Depending on the, you know, trader, they might be hoping that it goes down towards 80. But for me, I wasn't willing to jump on the bandwagon. I wasn't overly sold, I should say.

Makes sense. Makes sense. Well, my friend, I will continue to practice and continue to keep you posted.

Sounds good.

And continue to send everybody who asks over your way. Thank you for helping me. Fine tune. And I'll keep you posted. And I'll keep everybody who's watching posted on my progress. Thank you, my friend.

Thanks for having me. We'll talk to you later.

All right.

Bye. Bye.