January 11th, 2024 Ultra Wealth

We, I think we are all here but just in case something pops up, I'll be able to bring other some people in. So we have all kinds of things to talk about which I'm all excited to discuss. Had a lot of requests for Bitcoin ETF discussion from a few of you which is perfect and also would love to just review the markets, review any trades that you're in, review some of our materials for today, some things that we won't talk about. So we got a jam packed hour first and foremost to discuss the Bitcoin etf. Oh man. What to do about that? Well, here are my general thoughts and takes on the Bitcoin etf. Specifically Bitcoin ETF has kind of been around for a little bit. Not exactly an exchange traded fund, but if we go and look at there are a couple ways to get direct exposure into Bitcoin from a stock perspective. So exposure number one being ebtc. So you or anyone else could have bought this through an IRA or through any other actual stock account for quite a while. Let's go all the way back. This is going back for a way. So this is grayscale Bitcoin trust. So again not operating in the exact same way as an ETF operates, but there's definitely some similarities and so that's been around for quite a while. So the ETF thing is on a Bitcoin isn't brand, brand, brand brand new. A lot of people have thought it, right? This is, this goes all the way back to late 2015. So this has been in existence for a while. And there's also one for Ethereum. So again all of you can buy this through, you know, any financial institution right now that allows, allows you to trade OTC over the counter stocks. Most companies do. But ETH is a Ethereum grayscale which again allows you to purchase Ethereum as all of you know. Also with ETFs there are generally some version of fees that you have to pay because an ETF is, it stands for fund. So what they're doing is they're blending all the things together, whatever it might be. Bitcoin, let's take XLE for example, which is the energy spider etf. So there is an expense ratio, although generally it's very, very small. There's an expense ratio for the team, the back end team that blends everything together on an etf. So they're keeping track of all the paperwork, they're keeping track of the stock prices, they have algorithms, usually mostly software based expenses and all of that money, there's a very, very small expense ratio, but you're still able to capture upside movement on sometimes an industry, sometimes a sector, or sometimes a giant grouping of stocks. So ETFs are certainly not new by any stretch of the imagination. The big event that came out just yesterday or you know, last 36 hours. I'll share my WhatsApp screen because I posted this in our WhatsApp group. So here's the WhatsApp group and this is all the list of ETFs that have officially been approved for Bitcoin spot ETFs. So there's a few and I actually really like this one. The Van Eck is Hold on for dear life bottle that made me smile. I really like that. Again, Grace Bell's been around forever. Wisdom Tree BTCW Franklin Templeton Easy BC I like that one a lot too. Bitwise, BitB, Fidelity FBTC. So I know a few of you have Fidelity, so they came out with one. One really cool thing that I do like about it a lot is it will give you the ability to buy shares of Bitcoin, AKA track it alongside what bitcoin's price movement is. And if these are voluminous enough, which I imagine they will be, then you'll be able to trade options on them as well, which is really exciting. So that way you can do covered calls, you can do put sales, you can do collars, you can do all kinds of great option strategies on your Bitcoin exposure, which is really, really nice right now. If I own Bitcoin, you own Bitcoin, you can't sell any options, you know, puts covered calls, anything like that directly against your Bitcoin holdings, which is not the end of the world. It's just kind of lame. But long story short, it is very nice to be able to have that ability and capacity finally, right, to be able to use and trade options against the overall movement of bitcoin. One other small takeaway for open up for questions. Bitcoin will always outperform the ETF itself because the ETF has fees that it has to outrun. That's it. So you'll always make more money, in my personal opinion, just buying Bitcoin directly. And it's extremely easy. I think all of you here know that you can just go through Coinbase or Kraken or Gemini, all sec, FDIC approved US institutions and buy your Bitcoin directly from there and trade crypto directly from those exchanges. But I think it's a good exposure for Bitcoin and type into the chat pane, yes or no, this news will allow Bitcoin to go higher in value? The answer is yes, because in order to have the etf, well, they're going to have to have some level and you're welcome to read through the disclosures of the etf, but they're generally going to need to have some level of holdings of that particular position. So these companies are also going in and, and buying bitcoin so they can sell it to you and provide that, provide that transaction for you. And I'm, I'm here to tell you that Bitcoin's going to go higher over time. I don't think I've ever been wrong about that, just in general as far as timing is concerned. So here's bitcoin and right now I think this news is coming out. I'm not massively surprised by where it's coming out at, which is pretty much 48,000, $49,000 because Bitcoin's at 25,000 a year ago. So it's doubled in value in the last year. And now you're getting this, all this news. So this is going to cause everyone to kind of run in and rush in and buy a bunch of bitcoin when it's a little bit nice and high, a little bit higher on the premium side. And that's very often what happens with news. News is most bullish on any asset when it's very, very high, when it's down here. What was happening down here? Does anybody remember November 2022? October 2022, that was the Sam Bankman fried issue, right? Luna was going to zero. Crypto's fraudulent, everything is broken. Bitcoin's going to zero. The whole thing is stupid. And that's when Bitcoin's at 16,000, 15,000, 17,000, 20,000. That's when you should have been buying or maybe picking up some, buying some on a weekly basis or monthly basis. But anyway, all that being stated, Bitcoin will get back up to 60,000 this year. Just a matter of time and it will hit a hundred thousand. That's not even a matter of if. It's just simply when that will happen. And it's, I think it's a good thing for bitcoin owners if you have some bitcoin or other cryptos that they released the ETFs and now a lot of people are going to get more exposure. One of my, a chart that I really like is called Total T O T O in total, when you Type this into trading. View is the total market capitalization for all of crypto combined. And you'll notice right now it's at $1.74 trillion at the total total market cap. So now if some of these ETFs have additional exposure other than just bitcoin, you're going to start to see this number increase. You're going to see other coins that also get grouped into these ETFs also go up. Now in month six, which we're going to get into in May and June when we start talking about 24, seven markets where we start trading Forex futures and crypto, we'll do a lot more crypto research, we'll do a lot more deep dives, research on white paper. We'll do a little bit more active trading of crypto, things of that nature. Because everything I'm teaching you in this mentorship, guess what, it applies to crypto as well. Or it can certainly apply to crypto. So I think that's fun and interesting and exciting. The total amount, the highest we've ever hit was 3 trillion. That was back in November of 2021. And we'll get there again. But it's going to require more than just bitcoin. It's going to require other cryptos to really follow along as well. And I'll kind of prop everything a little bit higher. So I know that was a really quick nine minute discussion. What questions do you all have, if any, specifically about either Bitcoin, the ETFs, crypto stuff? Hit me. Oh, you guys good? Okay, Scott.

I was gonna say is an ETF safer than actual owning the coin or if the coin goes out, it doesn't matter.

Safe in what regards?

I don't know. They pull cryptocurrency altogether. I know it's not going to happen, but something like that happens, or they put so many regulations on it, something happens. Is it safer owning an ETF or the actual item itself?

Well, this is going to be all opinion based because Bitcoin has no governance, has nothing controlling it. It has no central agency, has no one linchpin that can be pulled. No one can ever shut down bitcoin, ever. I've been saying that for years. You can't turn it off. The only way to stop Bitcoin is to shut off the Internet and the electricity grid for the entire world. There's nothing anyone can do, right? I mean, us could ban it. They could say, I'm never allowing anyone in the United States to ever buy Bitcoin or You know, it didn't work very well for prohibition. So anytime America says no Americans can do anything, that's usually a pretty bad thing over here. I wouldn't imagine that's going to happen. Personally, I think buying Bitcoin is the safest thing you can do in that equation. Right. Buying Bitcoin versus buying the etf, I think, and I've always thought that the overall liquid markets are one of the safest investments because if you have a billion dollars and you want to get out instantaneously, just click a button and you're out. So same thing with ETFs, same thing with Bitcoin. Like, you want to sell it, you want to sell $100 million worth, click a button, boom, you're out. Nothing to worry about. Fastest way to get wealthy in the world is liquid assets. Easiest way is sales. And the safest way is real estate. So, Jeremy, arduous way is business. Sue. Right, Right. This isn't like a trading question, but. So with your bitcoin, do you keep it in a hard wallet or what's your thoughts on that? It's a great question. I have two. So the hard wallets are really easy. They're nothing too scary. It's think about like a lockbox that you keep with you. All right, so instead of going to the bank and having some of your stuff in a lockbox, it's literally just a USB drive. That's a hard wallet, right? Yep. Hard walls, USB drive. So I do have some Ethereum and some Bitcoin and some Luna. Sorry, Some lumens that I purchased while ago on a hard wallet, and I have that in my protection. But I will keep about a million dollars worth of bitcoin live and what's called a hot wallet or online ledger at any time. Because again, I can sell it whenever I want to. You can loan against it. You can. You can create income just by loaning out your bitcoin to other people who want to actively trade it. And if it gets stolen, right. The way that bitcoin has been stolen 99.9% of the time up until this point is one of two ways. Either a system gets hacked, right, and it gets stolen from hackers, or individuals fall prey to some type of scam. Saying all that to say, by the way, guys, I will never, ever message you saying, hey, send me a Bitcoin and I'll send you two back immediately. That. That's not me. Right?

So feel free to if you want to make that transaction with you.

It no one here is ever gonna do that. But people fall for that. They have, they have fall for them in the past. So those type of scams, those are the most likely ways that people lose their money. Where, oh, hey, this is Apple Computer reaching out to you, right? Your, your system's been compromise. Let's log in really quick, just click this link so we can log in your computer and fix your. No, that's the way people lose their crypto. If, if my personal Coinbase got logged in and hacked into and stolen money from its FDIC insured up to a quarter million dollars, which is the exact same as your bank. Okay. Same protection as your bank. All right. Yeah, good, that's helpful. Beautiful. Okay, sweet. Good discussion. Yeah. But we're gonna, we're gonna be diving all up into crypto. But truthfully, team, I think something that you all could do or should do, my opinion, I don't think there's any reason not to have a couple thousand dollars into a Coinbase account and have a watch list of all the assets available on Coinbase and just go through them and just look at what charts are available and just see what, what a good setup might be. So I have Coinbase right here and I can just log in anytime, just kind of open up a ticker, you know, and I posted this one in the crypto channel not that long ago. Stuff like 120% in the last three weeks. So it, it doesn't need that much money to, you know, make some small little growths here and there and there's no day trading regulations and get in out as much as you want. So it's pretty cool. So I don't think there's anything stopping anyone from having a Coinbase account. Just scrolling through some charts, using all the information that we will and continue to talk about and make some quick capital increases in your accounts. Yeah. So that's why this, what a great time to just look at this chart and also look at some things I want to talk about today, because we've been discussing optimizing everything with moving averages. Right. And really where they are and how once you can kind of start using these on multiple time frames and really practicing with it. We're going to review some of your Google homework, but I'm just here to remind you that these five moving averages work extremely well and to just really go back in time and notice when certain stocks broke out, what it looks like when they broke out, so that when it happens Again, Jeff, in four months from now, four years from now, 14 years from now you'll be able to actually play it hard, aggressively. Nice size, okay? Because that's what we're dealing with here. Once you know how a pattern looks, it will never change. It might be a little different, but it'll still be the exact same pattern. Okay, so here, here's an example of a pattern. Poor guy falls for a rich girl. Parents don't like poor guy, they end up falling in love at the end of the movie. Is that a pattern? Have you seen that movie before? We've all seen that film. It's called Tim and Nancy. That's what happened. So we've all seen the movie, but it can be different characters, it can be different timelines, it can be like slightly different things. But does that make sense? So as we're studying all these charts, we really want to be able to continually practice it. And I think this is actually a fantastic time really, to just look at. To look at different. Different companies, different charts and just see how all of these things relate to, to sizing. So let me pop in here into this again. Totally random crypto, just as we're talking about crypto, just, just to look at the chart. And I'm going to go down from a monthly to a weekly to a daily and just talk about all the things I think are really important. All right, so as I'm looking at the monthly here, notice how this particular moving average, we had never really been in between the 10 and 20. And so this is something that I call spacing. And so if we break through certain moving averages and we're able to look at them on all different time frames, it doesn't cost any additional money to cycle between the different time frames. Whatever time frame you're looking at, if you can start finding gaps or spaces that have never been infiltrated or places where there's just no moving average whatsoever. On the downside or the upside, that's going to give you a pretty high probability that there's nothing stopping the move. It doesn't mean that the trade's going to work for sure, but it could give you a 75, 80% likelihood. And that's how me and John pay our bills. Right? We go look for those same 5, 85% likelihood. So just for giggles, what I'm going to do is I'm going to draw a line at both of these moving averages for us here. Again, this is on the monthly chart, because what you're going to want to notice is what was above the monthly 20? Nothing on this particular chart. So no monthly moving Averages. All right, so let's go into a weekly chart. So here on the weekly, here's what we're going to be talking about a lot is just again, the spacing. I'm gonna go back in time really quick and just look at a few times where you could have pretty easily traded the space of the middle of these moving averages here. Right. Pop from there up into the 50. Check that out right there. Do you see how the, the moving averages are acting as a support resistance? And all through here, nothing, nothing, nothing, nothing, nothing, nothing, nothing. Until right there and right there. When we reclaimed and we got above that weekly moving average, what was the next resistance? The 50.

Yep.

You got to see the 50s. That was, that was really it. That was the only thing that was really there. And once you broke above all three of them and you're above the monthlies, what's stopping it now? Well, now you can pop into your long terms and go, okay, where are those little puppies? Where is the long terms? And oh, how cool. The 100 on the weekly was at the exact same place as the 10 EMA on a monthly. So when we broke above that level, I mean, it doesn't look like a lot maybe to some of you, but I just, I live off of this stuff. This was a 2.50 move between this very, very strong moving average that we would have known exactly where it is and this moving average here in purple. Two and a half bucks. So, Nancy, true or false, you could have bought a thousand coins or shares and made 2, 2500 bucks. You. Yes or yes.

True.

And you would have been able to know your risk, you'd have been able to calculate it, and you could have come up with a very, very high probability trade. All right, last moving average that we're going to practice and we're going to zoom into is the daily chart. And as we move into the daily, there's just one additional thing to look at. Check out how well we interacted with the crossing of those long term moving averages. So notice the 200 is above the blue line, which is the 100. And then right there, when the 100 crosses the 200, what happened to this particular crypto or this particular asset class? Doesn't matter what it is. We traded down into both of those moving averages that were confluenced together and bounced off of it with incredible volume. What do you feel like that means? Jason, if you're looking at that moving average, that volume, and all those additional moving averages that we were kind of adding together in the story I apologize.

I was just finishing up an email. But if asking what the. That crosshair, I mean, it just went bullish.

Yeah.

When.

Yep. You nailed it, brother. So that, that moving average, that crossing.

Meow.

Right. It's now it's really changing the direction and it allows the other moving averages from the bottom to continue to press this particular asset class higher. And look at how amazing this breakout was again just two or three days ago. Really good volume trade up into the moving averages. But check it out. Let's go back just 48 hours ago. If we come back just 48 hours ago on this particular asset, doesn't even matter what the asset is. This could be Carvana. It doesn't matter. We know for a 100% certainty. There's the moving average here. There's a moving average here. And what type of candle Joe is this here? And what is the meaning and the story of that candle? Joe's Internet might not be on. Let's go, Scott. What do you think, Scott? What's the meaning and story and sense of that candle in orange?

Well, it went bearish.

And.

It'S bouncing off the support of the long term moving average average.

Yep.

Looks like there's a lot of buying pressure.

Buying pressure is definitely there. What other kind of pressure?

It's starting to consolidate because it's moving sideways on the last couple candles.

Bingo. Nailed it. Is that what you're gonna say, Jeff?

Gonna say it's an indecisive candle? I. I can't remember if it's a high wave or a. It's something like that. It's a doji, right?

Yeah, exactly. The names are relatively irrelevant generally, but you're correct. This is a high wave candle. So you and your brother. Absolutely right. There's a lot of compression, indecision, and unknowing here. But here's what's cool. When you get a lot of indecision, compression, and unknowing when moving averages are together. And you could predetermine that if we got back above here, there's literally nothing stopping it at all on any time frame in human history. Would that give you the ability to play it bullish? And that's what we're here to talk about, team. That's what we're here to be able to really dive in and review the spaces between the averages, how they interact with each other on multiple time frames. Really blend all the analysis together and start finding extremely high probability trades like Nvidia. Right. Where you have every single moving average on every single time frame. Saying be bullish, every one of them. That's useful. It's useful to know. So this was Etsy. This was a trade that John and I played, played together a couple of weeks ago. That was really nice because again, same type of pattern, just different character. So instead of the notebook, this is the Titanic, right? Poor boy meets rich girl. Parents don't approve a poor boy. You have the indecision candle that Scott mentioned earlier, right. That compression is in between the 10 and the 20 EMA on this time frame, right? Right. Family, same exact pattern. And we can look at it and see if. Not, not that it will, but if it breaks above that 20 EMA, is there anything stopping it? Nope. No, no, nothing stopping it. Just a beautiful, amazing 8 point trade right there on Etsy. $8 per share. Now right here in the red arrow, you'll notice that on the red arrow there was an inside candle right here, really building pressure. So that could have given you an insight into taking a trade and just never went, it just never popped above it, which is fine. The one I really like here in blue, the light blue, whatever color that is. What's fun about the light blue candle is notice how the stock was going up, up, up, up, up, up, and then it rotated down into those moving averages and created a very, very nice hammer candle. Right? Nice lower shadow, small upper shadow. Beautiful bounce off of all the moving averages. Because what I'm doing anytime I'm taking a current trade in the future is I'm going back in the past and I'm asking the question, what did it do last time? And for any of my day traders who are here, if you want to day trade or you're intrigued on day trading, all of this stuff does and can apply to your day trading as well. Because if you're scanning the markets, doesn't matter. And great trade on Shopify, Scott. But if you're trading Shopify, amd, Meta, Google, Tesla, whatever, if you're able to know where all the moving averages are and you start zooming into those moving averages, if you're day trading or if you're looking for a really good entry, you can start identifying awesome areas to play your day trades. So what I'm doing here, I'm gonna show it again. So this is the bigger chart. On a weekly, we're gonna zoom into a daily. So this is going from weekly to daily. The two blue lines, this moving average right here is the 50 and this little moving average is the resistance from this gap over here. That's what those two lines Are So you have a good pop during that day. On a daily chart, stock is going higher, making this move. And if you were looking to trade this, you pop into a smaller time frame, and you get an amazing double top. Sorry, what I do. There we go. So you get a really, really beautiful double top. Stock trades up. And again, beautiful move. You already know that this is a bigger moving average on a bigger time frame. This double top comes in. And how can you master double tops? Study the ones that worked. That's how you can become really, really effective at these chart patterns. Just go in and study the ones. Work on any time frame. But again, if you're able to zoom in and zoom out, taking all the analysis on all the multiple levels daily, monthly, weekly, using the five moving averages, seeing where everything is at, you are going to be able to come up with much better ideas of what's going to happen and why. So we have a perfect double top. If I zoom in here just a little bit. Let's go with Nancy. Nancy, walk me through this hammer here and the importance of that candle coming in and closing below that hammer with that candle there.

You know, I would. You could put in a. An order to buy on the breakout of that candle, which never would have filled because it went down that next day and it closed completely below that hammer. So to me, that says all that buying pressure that came in, all those people are now trapped, and they're going to be looking to get out of their positions. And so I would expect it to go down at that point in time. And it retested the double top as well. That's what I see out of it.

Nice. Yep. So that's a fun pattern, because the speed at which this candle closes below the low of that hammer is really, really interesting family. The speed at which it closes because you had a hammer. This is the neckline of the double top. So the. The hammer is trying, but you didn't actually close below the low. Right. We're gonna hear me talk about closings all the time. But the gavel never got hit. There was never a price that finally ended below that neckline. But once you had a candle right here that not only closed below the neckline, but it closed below the low of that hammer. Anyone who was buying there is now trapped and losing money. And then the next candle. Jeff, walk me through the next candle. What's your thoughts and sentiment and take on that candle right there, the indecisive candle.

Pressure's building. So the stock just naturally went down.

Yep.

And so all Those people who were buying, right, you had all the shorts, 1, 2, 3, 4, 5, 5 candles worth of shorts. They were profitable. They began to buy. Like Jeff said, that's an inside candle. So it's compressionary in nature. Like Nancy said, it's retesting the neckline of that double top. So a neckline double top. You know, you get the. You get the M, it goes lower, it comes back up to test the bottom of the M, and then generally should roll over and make a new low. And this is where you're looking to take those particular trades. Right in. That little. The little movement right in here is where you're looking to get in. I like that. Any questions about that particular time frame or chart? No. Okay, let's go study then, some of the charts that you guys posted and some of the analysis that a few of you were looking through on some other trades just to kind of walk through what was there and why, why it worked and what was happening to it. So here's Shopify. Gotta pull up Shopify. Scott, it was just a good trade, man.

Doing good.

What's that, brother?

I've been day trading it, doing good because I won't drop to hit my pyramid.

Yeah, that's okay. So let's zoom in. All right, so pull up the chart. So this was Scott's trade on it. Now, what I love about trades is it doesn't matter to me if it's a day trade, a swing trade. If this was on a monthly chart, it's really kind of irrelevant to me. We get to. We get to walk through why that trade worked out so well. So this particular chart on Shopify, that was a three minute. So this is yesterday. And if we go into a three minute on yesterday and then we can walk through kind of what happened today. Because I think, I think the sentiment of today was also pretty, pretty reasonable. And again, the more you start looking at these daily charts, the more you start really, really, really just spending time analyzing any particular chart. I think that it's going to really amplify your trading success. Family. All right, so I'll turn the moving averages off, just the long terms for right now and just kind of outline the trade that Scott took. But you got some initial selling here. So some initial selling comes in on Shopify and then it starts to bounce. And then one of the things that Scott noticed was we had a consolidation effect right here. So stock trade sideways after a run up, right? Really nice run up. Consolidated had a bunch of high wave candles, indecision candles sideways Candles. And he played the breakout, getting in above all of that rest, all that sideways movement and let it let Shopify pop and kind of continue up into the target. So great trade, man. Now, if I go to a daily chart, right? Check this out. If I go into a daily chart, let's analyze not only yesterday's price action on Shopify, but today's price action on Shopify as well. So here was yesterday's price action. And if I'm looking at the daily chart, we have bull candle, bull candle, bull candle, bull candle. Jason, pretend that we don't know what's going to happen in the next two days. What would you think is going to happen if you have four bull candles in a row and a new high the next day?

That's going to continue to go up.

Okay, what else?

Oh, it could consolidate there.

What else? Or go down.

Or go down.

I love it. It's gonna go higher. It's gonna go sideways, it's gonna go down.

I mean, it could do anything.

You don't know.

Yeah, I mean, yeah, for sure. But you do know the trend's bullish. You do know that there's gonna be some buyers who are going to take some profits. And so if you said to yourself, we got four strong bulls in a row, we were at a very, very big resistance, which I'll show you in just a second. I know we're going to get some selling, and then I would like to see the trend continue. Most likely the trend will continue to go bullish. So I'm also going to buy. Scott, did that exact same sentiment happen today as well? Yes or yes? Yep, yep. Got some selling. So you got some profit taking and then it bounced. Well, let's find out why. Like, why are we having some profit taking up here? Is there a reason other than the fact that Shopify has just made some new highs and people are taking profits? And the answer is, if I go to a weekly chart and turn on the long term moving averages, there's the 200 right in front of our face. So that gives you an opportunity to play both the long and the short. If you're being able to look at and really, really study both time frames. Right. The daily chart, understanding the daily chart, knowing what the sentiment is, knowing that there's buyers, with those buyers eventually going to sell and lock in some profit, knowing that the weekly chart, we're here at the long term moving average. So this morning, Check it out again. I'm not saying that you had to do this trade, Scott. I'm Just saying. Just from a study standpoint, it's really, really good to see what happens and how. But look at how fantastic. Everything kind of came together this morning on Shopify. Keeping in mind, I did not do this trade at all. But if I was watching it, the purple line represents the 200 simple on the weekly chart, right, family, we already know that there was a bunch of buying on the daily chart, right, Joe? So all of those buyers trading up into a big resistance on a weekly timeframe and you get not one, not two, but three bull candles closing below the 10 EMA, which is also exactly located at the 200 on a weekly. What an incredibly high probability. Short to short below the low of this candle. And place your stop probably right there when you're getting into that trade. And the only way you would have taken that is you had to been following Shopify.

I sent you that trade this morning. I took that one.

Yep, I know, dude, it's so awesome, bro. So good. Yeah, such a good trade. So when you're adding those probabilities like Scott did, right yesterday, wait, waiting for the dip, then playing it long, and then today going, man, all these people are profitable. It's at a big resistance. Let me play the downside. That just makes the probabilities of whatever time frame you're doing so much better. When you can really stack your analysis on top of each other fair. Any questions about that at all? Is that pretty good? Because again, all that, I call that just do the work. If you're going to take a day trade or a short term trade and you haven't done this, you probably shouldn't take the trade. There should be some level of, this is what I'm doing. I'm looking through all the things. This is how I'm going to play it. Do the work. If you're not doing the work, don't take the trades. Because these, these opportunities are absolutely available to us. And here's the best part for me when I'm talking about like high probability trades, if I'm doing the work and I'm planning it ahead of time, I'm sitting down going, okay, if I do this, this, this, this, this entry here, stop there. That's a dollar of risk to make a $20 of gain. It's a beautiful, beautiful trade. Well done, Scott. Awesome job. So let's go look at some of your Google analysis. Which team, I'm so proud of you. I, I really feel like you did a great job at seeing kind of what I wanted a lot of you to See, on. On Google. So, for example. Oh, and just for future reference, Scott, anytime you want, you can. There's a camera icon right here. You can click that camera and click on the hyperlink, and it'll just. It'll just post an actual chart.

Sorry.

Yeah, no, you're good, dude. So here's why I love how he noticed this one. The very first thing is big gap down becomes a resistance or a resistor, which is. Which is nice. Now, here's what's amazing. Imagine that that's all you see. And you. You don't have any other data to your. To your right yet. If you take that and you know you're below all these major moving averages, could your entire sentiment be looking at only taking bearish trades at that level for the next few months? The answer is, of course, yes. So for you, Jeff, you could be doing your credit spreads, right? You could be selling calls. Joe, if you're doing covered calls, you could be selling call options. You could be looking. Shorting the stock when it gets back up there. You could have alerts for day trades. Right. Where you're playing day trades, you could have alerts for. All right, let me take a swing trade if I see one. So, for example, for me, if I'm taking a really, really beautiful trade, it's this one right here on Google. So, John Alonzo, you hear, why would I. Why would I take this trade? Tell me the. The four or five things that make that, I mean, a 97% probable trade for me. Yeah, well, the first off, you got that resistance line, that green line that you had drawn. Yeah. Came up into that resistance level. You got that retest gap down below. I think that's the 100 moving average there. And then you just allowed it to retest back up into that retest gap, shorted off the 100. That's it. That's it. Nailed it. And we had how many bull candles below that? 10 EMA. Yeah, it's three of them.

Yep.

So now you have three days worth of people that are trapped, which we're talking about that next week. But adding. Being able to add to your trades, the higher probability you have and the more reasons and rationales you have to take a trade right then. Then you can start adding to your position. Now check this out. This is what's really cool. So our girl Nancy is noticing that this pink line right here was the 100 SMA on a weekly. She's seeing that 100 SMA kind of coinciding with the 100 on the daily what an amazing, amazing spot to start shorting right here, right as, as both of those moving averages coming into place. You already see that strong resistance. You already see that really, really clean level. Beautiful. And then comes down to some weekly moving averages down here. Bounces off of them trades really giving tons and tons and tons of trading opportunities. Day trades, swing trades. I mean, imagine if we're zooming in here for a second and, and again, like I talked about yesterday, the, the zone that I love a stock to be at is around its long term averages. It makes me feel more comfortable, like I know what's going to happen. How many times did this stock interact with this moving average? Right, right there, right here. Once it broke through, you probably went long. Once that long didn't work, you probably went short, made some money on the downside. I mean, look at this bounce. To the penny once, to the penny twice. Another great trade here. Another great. A perfect resistance there. Perfect support there, Perfect support there, Perfect support there. Perfect resistance there. Perfect resistance there. You start blending these things. Team Forex, futures, commodities, doesn't matter. Blend them, see everything drill down and really, really start taking these trades. That's the, that's the genius of all this because it really, really does allow you to just to see more, to see more things. Like let's, let's just look at this trade right here on Shopify. We know, we all know that this is a 10 EMA candle, right? Bull candle below the 10 right there. And it's the first one. And we can see that. But we can also see, and we know that this is a, you know, a moving average or a resistance. So once it broke below there, two or three days later, just an incredible short took place. And we already, we already saw over here literally the exact same price, how fast it fell. I mean, that's 62 to 52. That's a $10 move in a week on however many shares Jeff won to short, could have been a thousand shares, 10,000 shares, 100,000 shares or one share. Still gonna be 10 points. That's what I love about stocks. All right, let's look at one other example and we'll look through the broader markets. So here's Jason's chart, which was really pretty. Zoom in. So talk to me about this one. When you said would have gotten stopped out, because I was looking to take the trade to the 200, where would you have gotten stopped out and then what would you have done afterwards?

Well, I would, I would have put the, the stop below the 200. Oh, wait, a minute, wait a minute. Let me look at this.

Your stop loss have been like right here somewhere.

Yes.

Yeah, that's one. Yeah. And I would. I would have looked at. I would have looked at trading it since it broke out of this little channel right here. And I would have liked to trade the 200. I mean, it's. It's a risk I would have taken.

And you know what's amazing, man, that's why I want to talk about that part on your chart, is because when you're going back in time, family, you have to be able to look at a trade and go, I would have taken that trade and I would have lost. And it'd be perfectly okay with it because you need to start seeing your. Your system, right? Your system is going to develop by using these methods. But what's important is knowing what the methods are, knowing how to scale into the risk, knowing how to be into them. And then as you see some trades go, I would have definitely taken that trade. I would have absolutely lost. And then I would have done this. And even if you win or lose, that's irrelevant. You have to know what your system is and really be honest with yourself and be truthful with yourself and say, yeah, this is. This is the system. So this is what I would have done. Any questions about that or any questions about any current trades or charts before I go through some of the ones I want to look at? Just good. Joe's good, Jason's good. Scott's good. All right, y' all are easy. Sue, anything you want me to look at? Yeah, you could look at Chewy, Chewy, Chewy, and maybe Carvana. Let's go check them out. So, Chewy, I am in on some $20 February protective puts. We had a really, really beautiful day the other day here, and I got filled on my second level of my pyramid. It'll load in just one second. What's interesting about chewing the. The. The analysis I'm going through on this particular one is we have a gap almost in the same location. So this was a gap up and this was a gap down. And we're talking just pennies from the same price, which is not necessarily good or bad, but it does add additional resistance. And that's kind of what we failed right here. Now, thirdly, this blue line is the 100 on the daily and 100 on the weekly. We trade down to that. Again, we failed that as well. So we have three bull candles below the 10 EMA. And my plan and analysis was simply if we take out the low of those candles to make sure that we buy some insurance on the downside. Because again, obviously I would love for it to do this. That's, that was, that's what I want. But I'm going to protect and still have very, very, very small risk. So that if Chewy comes all the way down here and I get filled up my final pyramid, I'll be able to sell this put and use the profits from that put to buy some more shares. And then I'll get into another protective put at $16 for March. If we begin to take out the main low of 17, which the big takeaway there family is. Always plan for your losses, always plan your worst case scenarios and always plan nice and far out in advance. Because the number one tendency for every trader in the stock market for every single person is to make 125% return in a day. That's what your brain says. If I'm not doubling my money, I'm an idiot. That's what your brain says. And it's okay. But I would like to say make 1% a week and then call me in four years. Let me know how you're doing. Right. Make a percent a week, call me in four years. It'll be okay. It'll work out because it's a skill set. This is not a get rich quickly. This is a get rich often it's different. This is a once. I know all the ins and outs of how this works. I'm going to repeat this process forever and it's never going to change and it won't. It's always just going to be math. That's the beautiful news. So that's chewy, right? Got the 100 on the daily there. And that's just going to act as a little bit of resistance. Carvana has also filled my second pyramid level. A little bit of a lower shadow today, which is nice. So I'm just sitting here waiting to see what happens. The long term moving averages, right, you got the 100 and 200. So they're still at 40 and 31 70. So I've been in that trade for like a whole eight days. So just kind of waiting out. It's going to load in just a few quick seconds on Carvana. There we go. So so far, yeah, we'll, we'll start to see if it curves out of this area and buy low and buy slow. I think it's probably going to be the approach on this one that we're going to be taking, taking hold of. And then of course I Know it's going to pain some of you, but it's got to pull it up. Just look at it because it's so beautiful. The Nvidia chart. Oh my gosh. So stunning. So stunning. Just going to go to 600 in the next couple of weeks. It's going to be really pretty. Today is a bear day, so has a nice lower shadow. When we gapped up today, we gapped up into all time highs. So let's walk through the sentiment. Was the sentiment today, Scott, on Nvidia the exact same sentiment as Shopify? Yes or yes? Yeah.

Yep.

Same, same pattern. So it's like you have a bunch of bull candles. Those we, we open higher. So all the bulls are like hooray. And they get all excited and excited bulls, they sell. That's what excited bulls do. So you get some selling opportunities here on Nvidia. So let me just pull up the, the 10 EMA here because again, I know we're not specifically focusing on day trading but this is all just the sentiment piece because even if you're just trading these particular moves and you see that Nvidia is having a down day at you know, 11 o' clock Eastern, you're like oh cool, let me just, let me buy 5 shares at 5:38. Awesome. You have some very nice 10 DMA opportunities here as you broke the pre market low. And then we have an absolutely stunning. I mean this was a, this was a work of art. I didn't personally take this trade but we already know what the trend is, which is amazing. Mean trend is pretty easy. But talk about high probability trades. You can study this pattern team. I love studying 3 minutes, 10 minutes weeklies. It's all the same for me. If I can find this pattern on a daily or weekly chart, I will play it with a lot of money. This pattern will repeat itself in this class, I promise you on other time frames, on other charts and we will see them, we will notice them, we'll find them. This is a double bottom with a higher low. And what occurs after the double bottom? A 10 EMA which is the first bear candle closing above the 10 gorgeous upper shadow. And it took out the first bear candle above the 10 EMA right there with a really, really nice move. Bunch of bull candles in a row. We consolidate and then we ripped. What a trade. And you already know the trend. That's the, that's the number one part about trading, right? What is the trend? Once you find the trend, play the trend. So if you're not, you're not Taking anything bearish on Nvidia. Right. You're missing all of this move. Beautiful. And you're only catching this move. Well done. And again, that can be on any time frame. Doesn't matter what time frame it is that we're looking at. But the reasoning again for anything that we're looking at is we're really just studying and reading through the sentiment, reading through the candles and asking, asking the question, what do other traders feel? How are they feeling? Why are they feeling this way? What's their thoughts? What's their opinions? What's their say? So what's their sentiment? Reading those candles, doing your homework on multiple charts, multiple time frames and really getting after it. Let's go through some other ones. Unless anyone else has any other stocks you want to review.

Well, I, I'd like to go over if we can, Boeing and Tesla. Because Tesla dip pretty good today.

Yes, it did.

Still doing its thing.

Yeah, Boeing with the window just falling off. Jeff, you didn't screw in the screws tight enough. Dude, I know the whole side of the place. Can you guys imagine being that plane? We're just. Oh no. God, that would have been terrifying.

They only gave him fifteen hundred dollars a person too. They only gave him each fifteen hundred bucks. That's what their life was worth to them and scaring them.

Oh really? That they, they already paid him out.

I heard it was a fifteen hundred dollar a person settlement. That's what I heard.

Wow. I wonder, I wonder if, I bet it was travel funds too. Probably wasn't even cash.

They knew if they took them, it was less likely for them to turn around and sue because they already been compensated and they accepted it.

That's right. Yep. Well, yeah. So Boeing, when you and I chatted, Jeff, do you remember my target on Boeing that I was talking about?

Yeah. I already trickled into Boeing a little bit.

Perfect.

But I, I, I do have a pyramid in it. And my next buy is at like 214 range. I was going to buy in some more at 214. Is that good?

I think.

Yep, exactly. So what's happening here is we all know what caused the gap, the, the move down. And we all know that it's bearish. There's nothing, there's nothing bullish about the, the move. And then what I'm gonna do now is I'm gonna turn on our other moving averages, right. The 10, 20 and 50. And we're gonna see that this gap down, which I'm really, really excited for all of us to just, we're gonna Be eating, breathing, drinking and sleeping gaps next month. But when this, when this gap down here occurs on the daily chart, we came up into the 50 EMA, which is this blue line, and we failed the 50 right here. Again, mostly because of the gap. Lot of indecision. But you'll notice that we have the 20 EMA here and then another moving average here and between there and here. Nothing, nothing that I can find on Boeing. No moving average on any time frame. So I think, man, we're probably going to head down to 208. So yeah, if you want to trickle, just make sure it's a slow trickle. We know Boeing will go back up just a matter of time, so we have to worry about that. If you're looking at day trading it right, you could definitely, as you mentioned earlier, you can always day trade price action bearish as it gets closer into a particular target. If you are more bearish and bullish or you just know to kind of start really analyzing and playing things at a lower price point. So 20878, I do think we're going to get there before earnings, which is late January. Yeah. So if I was drawing a pyramid on Boeing, it probably would look something like this where like the main, the main purchase, the main big bulk of pricing is going to be around 194, 193. But yeah, definitely pick some up at 208 because it can go down there and it's, it's a really, really strong gap with a really gorgeous move right here. And then Tesla. So Tesla's earnings are in just a couple of days. This was a really, really remarkable open. Again, I'm, I'm very, very fascinated by the open on this candle. Nancy, what was, why am I so hyped up about this open?

Well, it was below that hammer. I mean it was a gap down completely below the hammer.

That's it.

Anybody that was buying in that hammer is now trapped.

Boom. Simple as that team.

And it's also there's a strong resistance if you go all the way across there and.

Super strong, super strong. So this open, I mean, what, in my personal opinion, what an easy short on Tesla this morning if you were day trading. Because again, it opened below the low of two relatively decent long lower shadows. I mean, I wouldn't say that they were, you know, big lower shadows, but. And then here's your bull candles that came in right around market open. So we trade down, we retest bull candle, bull candle support short below there. Stop right there. Flush win, smiles all around. So that that would have been the day trade on Tesla. Right. Just mainly playing it short because of the overall gap like Nancy said. And then from a big positionary trade, we know earnings are just right around the corner again. Tesla, 11th biggest company in the world doesn't have to go up on earnings, but it's going to go up eventually. And as the cyber truck starts hitting more and more and more sales and people are, more people are getting into it, Jeff. I think that's when Tesla starts really doing its thing. I love buying Tesla at all twos and that's my next purchase price of some Tesla shares is all twos. And then after all twos is just going to be 200. So those are my, my next two prices to buy some shares of Tesla because it is going to go a little bit lower and then we'll see what happens on earnings. Earnings is always just a big gamble, you know, like it's just gonna be a pure coin flip. Is it gonna go up? Is it gonna go down? Not entirely sure, but it's gonna move somewhere. All right, awesome. So here's your homework. Since most of you figured out videos and we're gonna be doing a lot of videos just because that way you can see and hear yourself do this. And if you wanna do it in a chart, you're certainly welcome to but I would really love is I'm allow you to pick any stock, any time frame. So any year I want you to back trade the daily chart, right? Any stock, any time frame. Want you to backtrade the daily chart. But you are allowed to go back and forth between the weekly and the monthly. Use all the moving averages, trade one year and see how you do. Feel free to give me insights, any takeaways. If you want to post a chart, if you want to post an image, if you want to post a question, you certainly can. But any chart you want, daily chart, that's gonna be your primary focus. I want you to be trading in and out based on using anything that you want to see. But these five moving averages, the same principles that we're teaching. Monthly, weekly, daily, 10, 20, 50, 100, 200, buying and selling. Only other encouragement I would love for you to attempt to do both. Go both long and short. Ms. Nancy Jones. So go make some money as it goes up, make some money as it goes down. If you want to use your you like your buy, sell, flatten feature, you can totally up to you. You don't have to, but just let me know how you go. Let me know what you do, let me know what you see and let me know what questions you have. That's gonna be your homework before Monday. Real easy stuff over the weekend. And then next week is the best. It's gonna be your favorite. It might be your favorite week of all time, just in life in general, because we're studying market tops and market bottoms. How do we know what's the charts? What's the sentiment, what's the candles, what's the patterns when something's about to free fall or crush higher? And we're gonna do a lot of back testing and researching on market tops, market bottoms. Not to overwhelm you, but to tell you that that's one of the most lucrative things you can do. Study what the heck a chart looks like before it crashes lower and what does it do before it crushes higher. You guys ready to spend some time on that next week? Because it's gonna be good. Oh, man, I got some good charts for you guys. All right, sweet. Well, hit me up with your homework. Let me know if you have any questions, and I will see each and every one of you on Monday. Have a great weekend, family. Love you bunches.

Bye.

Bye.