Saturday Review

Another weekend entered without a new trend extreme close. That’s not so unusual. But the week was again within proximity of producing a new high close, and did not. Last week avoided it by gapping down at the last minute. This week avoided it by plunging one day early — just minutes after having printed a new trend extreme. Perhaps the only thing supporting the rally now is that its weak-handed sponsorship remains stronger than weaker-handed sellers… We examine this and much more, including strategies and targets for the new week, in this weekend’s Saturday Review.

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NOTE: The last two stock analyses include examples of my 5-stage Running Correction reversal pattern…The following stock requests were reviewed in this order:
AMD, Bitcoin, AMZN, GOOGL, NFLX, TSLA, VRX, NVDA, ARNA, FOLD, EXAS

okay we are live it is Saturday at San for the Saturday review July 29th and really interesting week interesting developments also as I’ve said that’s interesting what developments are haven’t been not nearly as session long rally end of the weekend rally off the mornings Lowe’s you know last week it was an afternoon dip that had to try recovering and did recover or firm from their sellers were shut down in the morning and both this week and last week last week going into the weekend there was an attempt to to drop below or retest the mornings Lowe’s and Brake lower that failed and the balance of the session of Bounce this week ended more optimistically which is interesting because this week on Thursday contained a pretty pessimistic stretch here and really was the one stretch that is the noon hour had already been entered it was about halfway through when price tumbled from new high is basically the highs in any case plunged is really the word collapsed relatively brief time into it was really an hour’s worth hour plus worth of selling and it was done it was done and it tried to do damage some of the damage at tried to do was a trend reversal well that’s just not going to happen you can write this down that a new session containing a new trend extreme isn’t also going to contain a reversal signal so if we know that a reversal signal is for instance in this case Too Close under an interim low here is the new trend High clothes on Thursday the 20th pull back Friday persistent Monday Valley resume or at least produces a new High clothes no other higher close so closing under that into amlot would qualify as a trend change or reversal will if we know that the same session already contains a trend extreme we know that the trend reversal is not going to succeed 99 point 999 I don’t have the exact figures in front of me but lot of a lot of instances of course the one instance the next sentence of course now that we’re addressing it is going to be the exception but the point is it would be an exception exception this business with or likelihoods we have to be aware that is going to fail and so that’s why I’m looking for the first Target of the bounce intraday basis Target was 6650 this was a reversal signal is 6150 had that broken lower and it was overlapped but only overlapped had that broken lower whatever verse resumed the brake lower would have given us that one exception or that exception it held we bounced 6150 held overnight Thursday night it even came coincidentally I don’t know out of the woodwork and response to North Korea launching a missile and their ongoing attempt to obliterate the Sea of Japan coincidentally there’s the drop touching it we acting up it did stop the mornings decline the mornings reaction down from 2469 stopped it short of the objective which was to test the bias down signal having held a test of the biceps and all the bias down signal is another three points lower it was a late signal so it’s going to be more vulnerable to failure not as reliable it still is unfinished business below but not a deal killer to a friend move which ended the week or not hire on the week but so where are we now two weeks in the making there’s one more ass here because the counter Trend sponsorship isn’t stronger handed so went sideways went sideways and into Thursday morning notice the collapse and if you can see them any charts notice the collapse Thursday so no longer the last minute like Friday’s opening gap down now making it more difficult or Friday all together which Friday was an inside day and traded exclusively and negative territory sure we’re covered the mornings dropped and recovered a lot but it didn’t attract new sponsorship new rally sponsorship this is not the stuff of new rally sponsorship again the Rally’s sponsorship week and it along the way up I’m try to be a voice of reason from time to time that there’s been pullbacks reactions down at have left unfinished business above or that have originated from setups that require retest at the high ultimate recovery theater Friday new trend extreme clothes or I’ll confirm break out over but are aside whatever it is there has always been some reason structurally for the rally to resume there isn’t now there wasn’t last week either there’s higher levels that I expect to be touched if we attack last week size 2484 2490 but there’s no requirement to probe any higher Thursday’s recovery made as far as we watch for optimism getting extended we look for a lot of contrarian signals you know it’s one thing to absorb a drop under prior Lowe’s that indicates that sellers are weak and it and they’re going to be there just not going to be able to reverse the trend here but the interim High it was so buyers are weak handed they’re either impatient or ineffectual biting off more than they can chew Tusa matter when are sellers going to exploit that and this isn’t exploiting that Friday morning slide for the overnight drop unless it produces a gap down or some sort of a break maintain through some sort of irrelevant window so back to that prior low that was tested it was recovered coming out of the bias environment the afternoon buy some varmint so that’s how irrelevant level is an established that we can’t rely on holding forever but we can infer from it being broken eventually that there’s something more substantial immediately yesterday in order to top extension so 46 which we’ve already known as the next lower attraction give that prior low where to break maintain a break and potentially lower could have been a lot lower had we gotten a duplicated Thursday’s drop on Friday I don’t know without knowing the clothes with that exactly would have been but we can identify a range would have been substantially lower if this is playing out in a normalized head and shoulders which doesn’t have to be tested by the way does it have to be a temporary reversal but often is if this is going to be more symmetrical and get back up to the 75 area and then roll over then we do still have that 46 objective nothing changes 46 being an objective out there on the next dip but it likely would extend to the 28 area that is how it would actually Tesla or prioritize fill a gap maybe even 20 for 10:50 but probably not more probably not be hey crash launcher The Head and Shoulders if it’s a head and shoulders can play at one other way as well and that is simply to extend higher not actually reverse down not reverse down yet in other words Head and Shoulders doesn’t always reverse down occasionally it extends they call it a reversal pattern because off and it is when it extends rather than reversing to a 60181 60181 60181 thats not measuring high to low or low that’s measuring left shoulder to write neckline that’s not a mainstream way of using these measurements that’s what I do by the same token those same data points datum points sure which is right anyway taking the left shoulder and right neckline and extending higher rather than a 60181 60181 typically it’s the 100 or 200 and either one of them with 2484 and then 2490 being the next tire objectives if the pattern were to break higher next if Friday’s upward it’s not really a provis Fridays inside day where to break lower instead of trying to break lower break higher first instead of trying to break lower 2484 and 2490 would be the next time jectors 2493 comes into that mix just as a noise and a higher than that rally were to really resume not just retest prioritize we’ve already discussed 2425 1450 is the next subject of above 2490 that clearly coverage 25 1075 2511 some multiple patterns a multiple measurements that have the same likely objectives in case the right of where the resume discuss the upside really only in terms of 2484 and maybe 2490 because how I began the presentation there is no unfinished business anyway is if sellers don’t already retake control because we’re seeing signs that the rally is weak and its sponsorship and it’s not glaring maybe it look that way Thursday momentarily it’s not glaring at this time otherwise because sellers are weaker handed sponsorship there’s three parties and any transaction there’s the buyer there’s the seller and there’s the sideline the sideline is the strongest hands right now when they come in the side the which they come in on is going to win there’s not a small contingent potential Market participants on the sideline that can come in and have really no bearing and there’s not a contingent on the sideline that is not very likely to come in on one side or the other side but because buyers have been losing strength and yet price as eat Tire and aching higher and starting to get violent reactions consecutive eking hires will turn the new high violent reaction gap down new Hive violent reaction Gap Town now a new high violent reaction that overlaps the prior instance just not making any Headway here so presumably the sideline contingent when it becomes sponsorship is not going to be enthused at buying this Ranger they would have we have seen it Friday so one more observation that look at the three indexes two indexes and an average ESR control group last Thursday at high this Thursday at High or in the morning and a break back under a pro but temporarily under their interim low how about the down which is the preferred destination for big money that has to be in the market but can’t be in Cora’s because of a negative perception of the market is wanting to be in the most liquid most widely followed least surprising the Dow 30 average that’s just hitting higher and higher highs and by the way it’s reaction down on its reversal down on Thursday which did come from a new high actually came from gapping up to new High and thanks that extra room didn’t even proba prior low that had to be recovered so we’re seeing like the safety basically and the speculative the speculative broke under its prior low the same Friday Monday prior low but at least Friday and Qs out performed on Monday and that was rewarded but not to substantially their prior low was held so if we do at this is why even though the reversal down in es reversing down in es as to pass one is to gap down Monday Lowe’s by Richard and lows 63 area or slide and break under irrelevant low that’s going to be a little less predictive that 63 area that a fresh load through a Roman timing window intraday maintain its break through an intraday window because of nq’s not necessarily the Gap up requiring a retest and Qs don’t have that requirement so this Gap up doesn’t it just because it’s above all prior highest doesn’t necessarily need to be filled From Below although it would be usual if we saw that in any commodity or else we would absolutely be looking for that retest and most stocks or most of the time of stocks individual equities because nq’s also managed to recover from a test of their interim low or at least hold it not initially recover but avoid the brake because of that I would expect that if this is going to extend down this Thursday’s reversal is going to extend down Monday I would expect that to begin aggressively literally gapping down so the less address of the start on Monday if they’re selling the less likely it even extends the likelier that at least. Yes comes back and retest it’s high or at the very least continue continue on with a more symmetrical head and shoulders so gets back to 75 unless were gabbing down on Monday I’d look higher initially but we’re not seeing signs for anything that should give us any greater comfort in the longer term ding up alright any questions please go ahead and post them to look at let’s do that now otherwisemaximum pull back right here to get that done 1365 so 1365 test should resume the rally minimum objective to fill the opening Gap that to 1513 probe its intraday high at expect naturally but tugging 1635 1755 it’s pretty timely on one-on-one basis and of course that’s Thursday during the big plunge so just performing with the market would like to see no recovery by now but if and also not a lot of well the volume into the consolidation confirms it to consolidation not a reversal attempt of any sort so it’s free timely in that you know pretty quickly if it’s wrong if it’s wrong to be long you’ll know pretty quickly because this is pretty much to pull back when it and there’s prior to Lowe’s in here that can be tested first it wouldn’t be surprising of intraday there were tests of 1740 45 $0.50 cheaper but I wouldn’t give it much if any more than that positive clothes no matter what the intraday drop or I would look at a positive clothes as being bullish to resume that rally okay post any stocks you have I’ll do two from everyone rotating around and coming back around until we’re all through Amazon Google I am studying I mean I’ve been monitoring and charting Bitcoin for a while I’m very confident that it is very responsive to very responsive to the market or two it’s patterns that is the does generate patterns and does respond the less sophisticated the market actually it can really be fun but other people just don’t realize that the participants are so vulnerable to their own sentiments and it’s a long as you know what you’re looking at it’s there there’s try to stay up-to-date with Bitcoin with this with this fork in the road that it’s facing and how it is accounted for how to block chains are accounted for and that’s created a lot of Havoc I’m generally bullish Bitcoin I don’t see this as a top or toppy more consolidation but right now that I’m going to be going into Bitcoin in this venue but it is in a pretty big consolidation right now and trying to break our Goldman has some stuff out on it that I think it’s generally right it’s more from an Elliott perspective the patterns okay Amazon Amazon announcement when the rest of the had so that opening printers what 6973 1060 973-210-6973 $60 higher wants to be retested and so long as lower prior High’s holds preferably just once that’s the next objective before I can finish Now volume never really got attractive on the rally out of here the rally out of here contraction in volume that channel that corrective Channel it improved a little but not into the trending so if that high is were tested I’d expected to be bearish had expected to resolve bearishly not at the same slope or gradually maybe even probe fresh Eyes First but still resolved down alphabet Google Barons as an article today by the way in this week’s issue that just came out that I think it’s the StreetWise column that is calling for alphabet Amazon to slow down pull back where unlikely so there’s room though for it too kind of fall apart or appear to fall apart wow really only backing and filling testing lower prioritize down into the 159 160 area I really don’t have any unfinished business of here it’s a good area for such a reaction down I really look for some sort of a dip into this area anticipate recovery or at least recovery to retest the highest in order for this actually get barish this pattern here has to prove to ever solved wrongly basically can have to reject this whole rally and that doesn’t require closing under the entire day to pattern I think 145 would suffice actually 151 – 145 Tesla running out of running out of distractions I would think now they’ve got their mass produced car coming online and pre-order what what does 61 a projection of that back above 350 8:50 359 I’d start assuming that that rally has resumed otherwise there’s potential to extend this down to basically under Point swing 262 there’s no new development that would have it’s not uncommon to see a break out from here I break out for this kind of pattern a breakout from call it a channels and really Channel bit call the channel if you want to put a break out the gaps up Extenze higher but often these will be more patient come back test lower price test to break out point the Gap come back into the pattern and then resume the rally and never have to deal with this again that’s not the case with this pattern at some point that needs to be filled now clearly there’s some kind of a paradigm shift here don’t know the story specifically at that time what was going on and it is held its add 10 for one split that took this from being what a dollar $30 40 to 13 14 and a lot of Institutions from a fiduciary with a fiduciary capacity being prevented from unable to and other mutual funds just by prospectus be prohibited from investing in stocks that are training under $5 now they may own stocks they bought over $5 and they’re not forced to liquidate them I would be silly wish they were forced to be a great trade but anyway now that it’s here there’s you can count on one hand the number of cannabis plays that or that are that are institutional qualified so I am looking for this really be a big plate in that sector the longer it takes for others to come online and it will that are institutional qualified that this will start commanding a higher PE on that segment anyway anyway several pullback potentials one already tested 22 or 2365 I can’t say that is the end of it next one lower it is 21:30 2125 and if the market we’re falling apart and took this down with it we can see the entire day this spiked up for traced back to 1885 I’d still be interested in it so I can’t say that this is necessarily the end of the pullback what would suggest it is is the recover back about 2610 so closing back about 2610 at this point closing above 2610 would be credible for resuming the rally not just a retest the high but literally resume the rally we were looking at 40 on this one pattern alone if no other pattern where to develop otherwise lower potential Channel nectarine aggressively into Stage 2 running correction that resolves aggressively stage 3 now we’re in stage 4 and that is the plateau now Stage 5 of this pattern this is a proprietary pattern of mind you want to find it elsewhere stage five does one of two or three things thing number one that it can do is just resolve up if Stage 5 resolves up 5 a his Stage 5 resolves up then that’s it we’re going to take this at this point will take this leg and double it basically so what was a rally from 8 to 14 six points becomes 20 is sent to it that’s 585 B is a reversal this is much more common by the way reversal to the lower quadrant of this running correction which just eyeballing it it looks like comes in around 9 65975 this is 5D and then it recovers and resume is the rally to the correction that’s actually 5 be one because there is a five V2 I said two or three possible resolutions 5D is down but recovers or returns to the origin of that rally and often as reverse the trend all together so the big risk here is avoided if we can just get a new high class get out of this now that we started playing close above the plateau on expanding volume again and we’ll look for another six points roughly I’ll do the exact math at the time 5A is a winner 5B you know if you want to get long for 5 and anticipation of 5/8 happening okay but be prepared to add on a pull back to 5B I wouldn’t just by weakness if waiting to buy weakness I looked at by weakness down here at around 965 because often that will then resume the rally but beware if owning it here if only it here try to get out of it here because it’s going at least to hear if not to hear I’m finally one more that was emailed it again if you have any other stock requests let me know any of these patterns look familiar you want to see if it’s going on in one of the following I’m happy to take a look at it exact sciences and controversial stock and just kept taking a higher and higher every time it had some sort of negative report it was a really hated stock they have a test that has been winning over insurance companies that’s been the primary story here and whenever you see a negative story that might have an effect on price the price eff ect would be temporary I was really back here as it’s rising Legends for me and again coiling so there’s a prior High correction correction of this up leg you can see the math is a 61 from the low last load to that high or trace a common 1.60 1.8% if I go from close to close coil up here just restrained optimism don’t like a running correction but internally that was literally exploding lower quadrant of that running correction 5D one because five V2 never materializes and instead recovers again is a proprietary pattern nobody else follows us I don’t think recovers back to the high what was this leg twenty-four to thirty-six 12 points also 50% so as I say we’re looking at about at about 12 points Russell looking at about 50% and there’s also a function to hear of this pull-back so there’s some Exacta to to it but generally 12 points 48 Target 50% 49 pattern and it’s correction plenty of upside still coming

No new high on a Friday. Not for lack of proximity, being one day off the high. Nor for lack of attraction above, there being a “new Globex trend extreme” outstanding. And the quasi-seasonality of expiration isn’t generally an obstacle to the prevailing trend. But the relationship among the major indexes has re-aligned with the last significant downturn. But first, the past two sessions’ hesitation should be shaken loose by Monday morning’s aggressively bullish WedEX influence. And the week’s smattering of high-profile earnings announcements will be rudely interrupted by Wednesday’s FOMC policy statement. We discuss those influences and more, in the context of charting and technical analysis insights, during this weekend’s Saturday Review…

 CLICK HERE TO WATCH

The following stock requests were reviewed in this order:
ALGN, GOOGL, FB, GILD, CAT, UTX, AAOI, PCLN, ADBE, AVGO, V, MA

Alright good morning and welcome it is Saturday it’s time for this Saturday review that all things going very sorry for the very late to change in the meeting URL I honestly just don’t know what the Rhyme or Reason is and how it’ll be roses roses out but the one we were using last quite a while so I guess there’s that anyway what are the recent developments and what are the influences that that created and what are the possible outcomes as we go forward into this new week that has some external developments coming we have Wednesday Wednesday afternoon the fomc meeting it’s not a quarter it’s not am one of the three months that has a quarterly presser by the Federal Reserve chairman person we do have earnings quite a bit of earnings coming out Google is Monday a lot of Fortune 500 Dow components Tuesday AT&T McDonald’s 3M caterpillar United Technologies more fangs Facebook on Wednesday Koch Ford Chiliad Boeing Thursday P&G MasterCard in a long with the health of the companies we get glimpses or the market gets Clemson to the health economy or not just domestic but these are global companies metric out this week that with both companies that have reported look like about 2/3 had underperformed estimates that’s a function of estimates perhaps being too high but there are missing Amazon Intel Starbucks more high-profile widely held economically sensitive or performance portfolio performance sensitive stocks coming Thursday not a lot on Friday but some Heavy Hitters Merck Chevron Mobil Exxon Mobil so busy week in that regard and we can look for afternoons to be a little slow or narrow arranging it is unusual head of earnings coming after the close of high-profile company or high-profile companies coming after the close it is unusual to see something like this Wednesday afternoon that’s not an ordinary pattern for an afternoon and earnings season what is that that’s optimism that’s optimism and it is not arbitrarily placed it comes after Tuesday but Tuesday did Captain probe lower hold a test of Friday’s lower prioritize work 1 week ago today we were talking about this chart this chart that had surged to attack top of this down trending resistance was 24 5150 and hovering there through Friday morning that ineffectual pessimism more restrained optimism and I have a case from the contrarian perspective potentially bullish broke our Friday afternoon there were other reasons for that and if they were going to be any kind of immediate reaction retracement its objective would be Friday mornings lower Pryor High as well Monday didn’t do it Monday also didn’t extend Tuesday did it being a day delayed not only Friday mornings lower prioritize ever and Friday mornings range but as 61 retracement back into the consolidation Friday morning help to identify the what’s interesting is that that was a date and testing that nearest retraction support and it’s unusual that would suffice that this pattern should have developed Monday Tuesday this not even developed or had it also developed in a singular leg-before reversing down that would be irrelevant to us at this point it would be some price accident happened to develop we can call it a noise but because none of that is true because the pullback stayed away from the prior High because this then this high was exceeded by another hi this is all over night Globex this is a new Globex Trend extreme being a new globe extend extreme it is basically historically mandated to be retested intraday in other words go back to every new Globex friend extreme that is created with these conditions and eventually it’s were tested intraday not necessarily immediately it’s orrible timing tool but it does offer context similar to the same concept underlying over but are size or oversold are size and for that matter needing to be retested in many instances because it takes if this is going to develop or new trend extreme close on a Friday either all available strong handed participants at the time are making that happen and strong handed means they may be wrong and timing they don’t care about timing but they’re not going to let her reaction down go undefended they’ll buy it back up into a Friday it’s kind of the same thing but the opposite or the inverse heavyweight that all available strong headed person participants are choosing not to push back or allowing the move to persist or in some cases making it happen it just doesn’t happen in a vacuum and sew this new club in extreme 24/7 6185 has to be retested just because historico Lee they’ve all been rested if that’s a reason but in the interim there’s room for a pullback consolidation time no time into it whatsoever so what other optimism do we have well then optimism’s running a little short I mean it’s interesting the whole reason why I’m pointing out the optimism is because if we go back if we go back to what just launched this rally leg where we’re now identifying signs of optimism it’s this pessimism the pacifism pessimism is part of sewing and selling can get carried away with itself and be productive and be sponsored by strong hands it’s not a good in other words it applies everywhere it doesn’t necessarily lead to up anytime soon but we had 24 6350 as unfinished business left outstanding from Thursday morning that was a knee-jerk reaction to news that really took price down but it prevented it prevented triggering bias up and so put into play that offset into the BIOS down signal stopping short of it is a form of optimism testing it a little bit later that’s the open holding it throughout Friday morning form of pessimism vs. really a mixed bag we can’t get label the markets current condition as leaning holy or overwhelmingly or to any relevant degree one way or the other so pull back could resume temporarily because we’ve got unfinished business above but could resume or we can get on with the recovery I suspect it’s going to be one of the other and not just range near Lee in here but we also have one other influence other than the iPhone C meeting external influences fomc meeting earnings we have and I’m saying these structural influences the new club extreme extreme we also have Wednesday which broke out there’s a number of bells and whistles but it broke out above arrange it was only one day’s range or when days break out and this is not trending to originate we can all see there is a low there’s a rally 2 days actually we have to count from a prior high so it’s not a multi-session rally but there’s very clearly a break out so that being expiration week tells us that expirations bias into and out of the weekend and not Monday and Friday but Monday afternoon and Friday morning is likely to have a similar bias bullish addressing the I left one thing off the list previously optimism and pessimism Wednesday not for lack of trying afternoon begins with the bias environment and tree at 1:20 and it’s looking pretty bleak for a bullish wet exit this point throughout this afternoon until the last half-hour the last half-hour which literally saved the indicator it have the recovery extended more than at least but more than 61.8% of the way back up to the entry we’d still suggest that there’s a chance for that wet bullish influence to persist which will be very important Monday morning but it did leave no guessing and literally recovered the entirety of the afternoons drop to that point that’s an upward bias flat butt upward bias because it were traces dips it doesn’t need to be aggressive on Friday afternoon this influence it just needs to be present and if its present on Friday afternoon it’s likely to be aggressive on Monday morning and one thing we don’t know there’s there’s no complete scenario where we will have perfect look at all possible features one thing the one thing that’s lacking in this indicator is the open even if we knew it 100% degree of certainty that Post open Action on Monday morning throughout Monday morning throughout the bias environments lapsing we’re going to be bullish and aggressively bullish we don’t know from what level overnight action can Trend up and greet the open hired with the open for me too I overnight action can gap down to can trim down to greet the open from a gap down or flat in either case or any case when were expecting the indicators influence to be as up aggressively through the morning so greater games steeper slope relentlessness these are characteristics that we should be able to look back at noon Monday and pretty much see them all present Monday morning as far as the bigger picture because the temporary pull back we knew that was a temporary pull back it has resolved up there’s nothing left about this pull-back lower prioritize if it’s ever tested again but there’s nothing about this fullback needs to be retraced recovered exceeded that’s all been doneadd to say that this leg necessarily is done but not necessarily done at any given point but we do have some pretty significant resistance being met to the degree that there is buying pressure reflected which is the whole point to accumulation accumulative patterns identifying the relevant points in them and what sort of upside their sponsorship is willing to defend pull backs against until it’s met and then being able to narrow that down to some precise levels the next tire likely objective in here like we objective yeah the whole 7475 7450 area which can be overlapped it can be overlap considerably intraday but so long as it’s holding through clothes it’s holding if it’s taken out the next tire objective basically 2490 and then big payoff for taking that out 25 1450 there’s no requirement to get there if I were to hold a retest neutralize any attraction above and come out of the like at the bottom the recent bottom come out of the timing window that’s being that’s being spent probing that resistance or relevant level without maintaining that recovery eyeball few things in this particular time but if we don’t know yet that has just a fullback just to pull back without yet neutralize me upside as far as if the upsides first neutralize yeah those are likely to influence price on the way down but they wouldn’t be the objectives and if there’s no for their pull back or a price just did the trend just extends we’ve got to 2490 and 2414 1450 there’s a major objectives that current date accumulation and distribution is reflecting strong headed sponsorship will defend the market on the way to I see a couple questions wasn’t the elections night election night low also do glow plugs Furniture good question because remember it’s got to be in the direction of the Tramp it has to be a trend extreme so it was certainly bigMariners didn’t get enough in here hang on so in other words here’s election night of courseclearly not prepared for this Tipper trailers let’s go back to 81 minutes sorry for the delay here the origin is already trending up I want two to affect price of the index itself so with at least a couple of sessions of being in sync we know that that’s valid since the context of that was the speculative component and the ex had underperformed that distribution didn’t happen in a vacuum and happened from up here what happened from up here sellers were attracted so we would assume that being a second set up second bite of that apple we get the same reaction so that’s over looking for or why were looking for timing-wise near-term it’s not a timing tool as in tomorrow must now perform in a specific way it’s a timing pool timing tool to tell us this time is how we resolved and legs typically don’t endure for weeks and weeks so this time this leg and then reverting back to the s any hesitation resistance like probing the prior High without closing above it or fulfilling the next higher objective if we get a break higher if the trend for cysts does going to be a very very vulnerable to not necessarily that much likelier to there more vulnerable to reversal because there’s some greater degree of likelihood that there that they will be tops if they will be reversed alright that’s it for the bigger picture and certainly with the chart room opening tomorrow at 6 Eastern we’ll see if the beginnings of the overnight action will see where Sunday night’s whether there’s any clues as to Sunday night what it intends to wear it intends to deposit the market at Monday’s open but gapping up flat or gabbing down we will expect the morning to Rally that’ll be the template against which we compare actual price action and so long as coming out of the open if not the open itself price is trending up will anticipate that that Trend persist through the morning if we got down to 5759 the anticipation would be that we trimmed up to fill the Gap back to Friday’s close Friday afternoon or Monday afternoon totally irrelevant whatever the influence influence evaporates and tirely coming out of the Monday Morning by now is the time I bet into expiration the objective was 159 enclose their can’t say that it’s extending some of the earnings that are coming out Google it’s a good level to have recovered for weed test of the high so seemingly ready to greet earnings from a position of strength Facebook just a wrecking ball even if there is an initially negative knee-jerk reaction down it is likely to be recovered to test the I just not greeting earnings from a position of weakness another one that had been requested recently and playing at Joey add Gilead not the same safety Gap caterpillar play 4:40 so basically 8440 pretty critical to the near-term momentum pull back limit 8440 doesn’t hold than likely a deeper pull back down to 72 is underway not a lot of time to be consolidating in here but get out to Fresh High next subject of 9850 not a must-do doesn’t have to be met and it is should be a concern that Maddie is really deteriorating in here price momentum or as I as well Pricelinehow to get rid of this certainly avoided down leg and it’s been rewarded for that they are swing objectives being mad in here it’s still an upfront iri is Ireland’s so it’s it’s tough to get barrage I just can’t see getting bearish on on this if there’s a negative knee-jerk reaction down to something and again seems like we’re getting closer earnings it would likely be recovered especially coming from a fresh High lot of different resistance points buying pressure being satisfied I can’t say it isn’t necessarily a cell spot to sell and if you were going to feed this because of so much mine pressure having been satisfied I could be very rewarding and it could be very deadly the point is if it’s not very rewarding very quickly if any higher high is printing especially a volume is improving be very afraid don’t be short this stock or don’t be short the stock on Fresh highs or wait for some sort of a pull back like under this congestion even more than a 61 8 retracement of this surge before selling because this trend can otherwise extend but this is a spot where at the market where to turn down or bad news were to come out on this. I’d see it being recovered eventually but it would have a Maximum near-term Impact to the downsidestarted OB I’ve heard of them pull back never developed it’s pretty critical area anyway 140 – 40 call it that has had an impact of this is kind of what I mean about there’s the pattern you know to this point is not barrich higher highs Harlow’s death but it is fulfilling a lot of buying pressure and so it is vulnerable to reaction down but the origin of that reaction tells us it’s likely to be recovered as I was just describing a couple of other stocks and here’s how that can play out big reaction down because it’s least defended had its most defenseless you’ve got a lot of buying pressure that spit of the stock that’s satisfied its valuation evaluation that was perceiving future valuation is being fulfilled and so it’s ingesting its exposure accordingly reaction down but it’s recovered because the origin is not a position of weakness takes a while to get through it but looks like we’re getting food or trying how to compare this to what we had discussed in the indexes the three indexes there’s a time in June in June where we see MDX underperform and now they’re back in sync and now that they’re all back NSYNC there’s another opportunity for the trio to reverse back down similarly hear all this chipping away at resistance 143 area or 4240 and now there’s a concerted rally it’s not overlapping it’s an extended latest new highs and so there’s another opportunity another window of vulnerability if this were going to reverse down or be vulnerable to reversing down it would be on something like this so we look for Clues for instance volume really been bigger not great volume accompanying the the trend not a break out but it’s breakout ish instead it’s starting to wane and getting a little ahead of itself as well so it’s a pretty good spot for it’s a pretty bad spot with confidence but as far as expanding sharply on any fresh high-volume while it would be would you look at this side right now and interpreting volume or interpreting the pattern bullishly with a greater degree of confidence if volume had been expanding into this bounce it wasn’t there’s one more opportunity for it to expand and that is on any fresh hi to that degree and it’s interesting there’s a little consolidation here for several days stopping pessimistically short of probing the prior that it’s already coming to contact with it’s not rejecting it so on any fresh high-volume at better explode almost literally explode higher to confirm otherwise that is toppy right Visa Mastercard there’s an article in today’s Barons this week’s parents that came out today there was a big merger or acquisition was a 10 billion dollars British payments processor as far as participatingthere is a objective at seeing it would be one of the 380 but it’s otherwise pretty solid uptrend so we can’t assume that we going to reverse down from their Master Card big Target here when 28 1520 little optimistic had an opportunity for a pullback in May at the low and didn’t get it done here’s a lot going on here at 1:10 I’m not sure the stock gets away without retesting 110 in the most bullish or bearish scenario if there is a knee-jerk reaction down its objective is probably going to be something in the 110 111 area but again it’s an uptrend so there’s no cell signal if it extends we’ve got a couple of objectives 1:35 and 1:46 okay buddy else it thanks so much for being here

Will the rally rest on its laurels Monday and begin a correction, or will it extend higher impatiently? How deep of a pullback is possible, and what are the consequences to extending instead? We discuss these questions, and others, in this weekend’s Saturday Review.

 CLICK HERE TO WATCH

The following stock requests were reviewed in this order:
ARNA, GWPH, CARA, UA, GILD, VRX, ALGN, ULTA, CTRL, TRUP, X, BAC

okay then good morning recording is going all functions operational thank audio okay you can hear me that’s great good morning and welcome it is Saturday it’s time for the Saturday review pretty easy day yesterday we don’t often get Friday afternoon Rally’s and I have tried but haven’t been able to find the Rhyme or Reason that can be predictive of them even in the morning but everything really in my work anyway is a process of elimination and so the attractions were above the that is any downside attractions we’re pretty much dispensed with at the open when the open didn’t succeed at reversing down on a Friday and on this particular Friday that pretty much zero doubt the likelihood or at least maybe even the potential for reversing down sellers were pretty much marginalized Market went above and beyond and literally fulfilled everything we had had outstanding from several weeks ago three weeks ago well coming up on for couple things didn’t have over butter size of the high but we did have unfinished business from a afternoon by Target that have been created three Mondays ago and it was a very recently or a very fresh young signal not something that have been outstanding not something that it had a lot of sponsorship and it was quickly on influential nevertheless the afternoon did trigger up and so we make note of that sponsorship that’s unfulfilled praise you can say and as I’d like to say it doesn’t prevent detour it just tells us the context in that context tells us how we should expect the market to behave and when the market deviates from that behavior then we have something to consider but in this case that detour in a number of cases tried there were a couple of times when we could have fallen off the edge to a lower level before bottoming before being like clear than to recover but especially over the past week or the last week last Saturday when we were talking we were discussing trying and failing and the skip through the timing windows that were testing them we were able to identify that sellers weren’t getting any traction for those efforts and so week ago when we met the right here we were looking at the potential for full recovery for ultimately ending this decline for all these probes of the prior consolidation that had finally broken higher three-and-a-half 4 weeks ago that all of those probes and failed and that was rewarded this week so Tuesday gapped up and I’m going to we did this during the week I’m going to show the analog somewhat of an analog certainly not the same ultimate resolution but just went out how similar to setup scan develop differently there was no these weren’t sequential so there was no requirement to develop differently but still Aventuras to point out how there’s this down trending resistance and hey gab up substantial Gabba to the upper end of multi-session ranging or multi-session Pryor High that’s here on Wednesday Extenze higher on Thursday and this week extended sharply higher on Friday satisfying as I’d originally put it out there 2454 by Target that have been created several weeks ago the after the detour the room for noise above it likely to be tested two and 24 5650 make note of that 5650 in the morning I buy a sub signal to 2452 25 or try getting 2455 and it was tested and what did I say by 24 5650 the room for noise above 2454 make note of it because despite having Pro intraday here’s 5650 being tested during the afternoon by its environment and as the afternoon by its environment finishes lapsing it lapses between 2:30 and 3 and here it is at 3:50 6:50 it’s probed again big short squeeze into the weekend we traced entirely to 5650 actually testing 3650 overlapping at the closing at 56 that was the closing equivalent comes out of it with a gap up Gap up above multi-session prioritize follows through the next day little more aggressively and then follows through the next day as well now just a little more reserved that last in March April was more reserved in recovery so it’s not a perfect but what’s the what’s the time the same add there for that the market would react similarly Joe price higher even without having to get the Michigan sentiment numbers are the Michigan consumer sentiment numbers so that was already done but the pullback didn’t reverse down digested it for the morning nothing happened in the afternoon this is a lot of short covering we assume it’s short covering that fulfilled objectives 2454 that have been outstanding for almost 4 weeks the room for noise above it 5650 that was likely to be tested because of the delay and getting it actually tried skipped over 24 5225 the mornings bicep Target 5650 actually not well quinca dentally well that was the room for noise above 2454 the prior Target there was outstanding it also measured out to be this afternoon Friday afternoon that was Matt for the equation for price price and what kind of stuff that I’ll do intraday it cetera but on this case or in this case at the end of the day and in this specific case at the end of the week buyers are satisfied demand has little reason to increase unless or except for maybe some follow-through momentum coming out of the weekend Supply apparently is not in is not short at this point there is Supply if Supply were in were limited as of this point at 5650 then probes above it would have closed higher in other words irrelevant timing window that tests irrelevant level would have been exited having exceeded that relevant level just like below these relevant levels of support that were probed during Rovan timing windows with a maintain their breaks it is time in Windows there was maybe one break through a roll of and timing window during the entirety of this 3 + week correction 394 correction but never confirmed at the worst and now we’re saying the opposite above so in other words there’s a reason to man reason why this rally is now ready to at least correct or if not be interesting and the big reason is because Supply has is indicating that it’s at Wing demand headed little bit of a snapshot Friday afternoon but that’s and that’s not a predictive snapshot for a break out but it does give us a glimpse into what sort of sentiment there is and it’s excessive there’s one other reason why we should take seriously Sunday Monday if there’s and what about that in just a moment cuz that’s important under Friday morning Friday morning 4:50 not just Friday morning but probably skipping over a session and back down to Wednesday’s Wednesday mornings highs 4242 is a pretty critical level or influential level at least through the week since it was tested anything lower than that and something more top immediate Paws back pretty deeply over the course of the week we do have expiration we’ve got a couple of central banks and we’ve got do jec be on Thursday the following week we’ve got FMC so as we get into the through the week of course there’s probably going to be some more focus on the retail stuff housing sector data all week long and while that’s not actually directly or has substantially reflective of the consumer is not consumer goods it’s a look at buying power and it’s a take on on the the industries that supply that that’s all week long to be a lot of opportunities quarterly earnings are stranded inundate the market and this is certainly not as I said at the end of yesterday at the market wrap column after yesterday’s clothes which by the way I had the wrong link or not a good link to the recording if you need that it’s updated but as I said at the end this is certainly not hunkering down constructively ahead of earnings this is optimism so if the markets optimism is going to see it through then I immediately and not conserved buying pressure then maybe not immediately but somewhere in this area were looking at more so at top and then we’ll be looking more granular levels of gaps open gaps left outstanding closes left at Santee bike apps to try and time that or spot any patterns that give us Clues but those are the two likeliness pads so just real quickly then to go ahead and look at relative performances here’s yes and please just yesterday making their new hi just yesterday returning back to the averages are indexes do you get back in sync where one or the relationship was predictive of rotation beneath the surface when they get back in sync with each other that just tends to put a bow on it and having fully gift wrapped in the recently rotated Market the bigger correction across-the-board tends to appear that’s what we’re going to be looking for here can we get an nq’s get back to prioritize that’s not a big ass got a market that rallied 50 points yesterday Rally 200 points net over the prior two days another 50 points of the next couple days probably not a difficulty and when all three of made fresh eyes if we even get there then if we do get there immediately that’s going to be a big red flag alright any questions about any of that please let me know I want to do stocks tono questions we did go on for wine I must have covered everything it was some stocks I want to do wanted to come back to yeah last week I brought up arnoult a start that I’ve been that it just turned up in some of my stuff I run scans we talked about this last Saturday it had been calling and prior to that and I converted Head and Shoulders hit it been calling in to last week’s close and worked out really well but I just want to point out like the thesis my thesis on this is this is not entirely or exclusively a cannabis pharmaceutical but it is having reverse split one for 10 and taking the stock above $5 has made it a candidate for institutional buying French stations that have just a handful of other other stocks in the that have their own exposure some entirely and some not so much to the Cannabis sector you know GW Pharmaceutical which also looks like it’s bottoming that’s a little different story Cara Therapeutics which did really well for a long time had a nice break and then some bad really mixed results on a on a trial they were doing I don’t expect that to stay down Scott’s chemical grow not in Pharmaceutical multiples added broken eye the way do we have any clues when there’s not much reason to ever turned down to this prior low it’s not that the balance created a high a new high in which case would be no bullets reason to return to this Parlow so it is it is potentially bullish but it is spending a lot of time here without without recovering any reason for this huge volume Spike at the clothes yesterday and see a number of those if it’s inexplicable inexplicable but certainly interesting it did take volume up a little that’s pretty good on a Friday to expand volume to expand now looking at the daily so I wouldn’t give this I wouldn’t dismiss fresh low here you don’t maybe there’s room to test 1818 10 I just say right now that 1810 under clothes under 1810 definitely potential of pro bit but closing under 1810 says down says if this consolidation is breakout attempt all failed otherwise this is basically from risk-reward bases assuming it doesn’t gap down if it’s going to fail 1855 is the cheapest in the range without breaking lower to where we decide that the recovery wasn’t coming but I don’t have any other Clues than that Gil Yad interesting downtrending it’s it looks like a channel it’s not really it’s two parallel support lines that it’s been pretty much hugging and let’s see you know it’s pretty much still hugging it parallel anything parallel parallel like here’s a volume or here’s a sentiment surgeon surgeon sentiment and it Peaks at the parallel trend lines so it’s not actually break out again not a channel hear these two dads lines below are not a channel it’s not breaking out from a champ so but is a breaking and within the range and now we have a high in July that’s interpreting this low as a higher low so definitely giving it a better for the doubt it’s not that this will necessarily add dozens of points immediately I can still see this pattern getting 276 7620 dipping back down to what would then be lower prioritize and reversing up from there that’s the bullish scenario scenario scenario just basically gives back too much of this bounce and under 66 go back in there and recover and nice performer I’m not sure what I’ll be able to add to thishi regardless of the past there although we’re talking about the next PATH the path that we’re currently on breaking higher and like to see volume get a little bit get a little bit better on the break but regardless of the duration I should say once and and the resolution for that matter 169 should be test when 6890 that’s a minimum of jective based on all available patterns and I would maintain that expectationadd maintain an expectation at this point so long as 148 is that 148 85 or to hold a support images basically I want this consolidation right now I want that to be the one to break I’m in this is a very Timely timely point is it but yet still bullish looking for a minimum of 169 168 90 159 initially and then 169 might be some pushback at 1:59 that’s that’s the only thing that could derail the 169 Target is is a problem at 1:59 but I want to look at it at the time to see how it’s being done that’s being addressed negotiated Ulta done this was a huge drop call that well ok near-term done possibly and I think there’s any unfinished business aboveso we’ve got two options here to possibilities on Alta this is either the end of a pretty substantial corrective dip or it’s on its way to substantially lower levels this is a in here this is a basically a complex pattern whether it’s an ascending triangle inverted Head and Shoulders the point is that it develops away from the prior Trends extreme it doesn’t incorporate this leg at all that makes it complex and develops under that Pryor High off in a complex pattern will reach its objective and reverse the longer-term trend the minimum objective on the reversal without reversing the long-term trend is at least back down to the lower end of that complex pattern which is essentially 227-231 so this is my minimum objective if this were to extend any deeper and I say any deeper because there’s some possible there’s some potential that this is just a correction that’s done that this has been corrected I don’t know window earnings come out for instance that could trigger a blip up and then reaction down so so very critical spot in other words right in here the 244 – 52 doesn’t have to touch it don’t want to see it touched it even a bullish scenario pushing her I could touch it briefly but I suppose that one other one other point of guidance is I would take seriously any initial Bounce It splits assigned to 7225 to that so back above to 7225 I would take seriously the potential at this is at least bouncing back to 302 301 that’s going to be a bigger decision but if this minimum projective I’m still not going be able to give you a direct answer as to whether this is done which it sure looks like at this point we just missing all the all the conditions but if 227-231 were touched that would be another critical inflection point either recovering sharply or collapsing entirely but generally this pattern doesn’t end well Ctrl no nice little cup & handle here at the low and I don’t have any reason to be suspicious of their rally ultimately or eventually extending the fresh eyes higher highsstart running into resistance 2538 is one candidate for that resistance 2810 2980 but I would look for I’d look for 25 38th and the 28th 10:20 980 area to be tested so long as 2264 old to support before okay interesting on La Resistance up here at 2475 I would expect 2475 to move that under any conditions it’s a close above 2475 that’s going to tell us that that we’re heading substantially higher and buy some stantial ehire buy substantially higher I would think in terms of 2950 34 that’s a critical spot the resolution of that tested 2475 that’s going to be critical if it’s even touched which I’m expecting it to be touched no Assurance of that at all but I’m expecting it to be touched sooner rather than later okay what do I think would be a time for 6 months or much shorter concerning the drop slope which is the least likely scenarioget different measurements and see if that helps so the next opportunity is 1630 to 1772 that’s going to be the next opportunity for Aloe confirmation would be really at any time to recover back above 26 + -is that going to be the final hurdle to cover but that’ll be a big one can it is it don’t really see I don’t really see any accumulation in here and the volumes not matching the cycles of the ups and downs pullbacks higher highs internally so I can’t say that yet if I had to be long or short here I’d have to be short just based on volume based on volume of this consolidation there is a pretty good bar I was just back to the upper end of its range on this fresh High so that’s the one thing of that could develop next week if we could get another big up bar at least one on another fresh high that would change my near-term opinion a lot if we saw bigger volume on closes above 2422 that would change my near-term pinyin opinion a lot as far as this just being a corrective balance before extending down to 16 3272 1772 instead of already recovering 26 area Okay Bank of America and I don’t see any others went there Bank of America trying to recover fromis this credible for extending higher it isput under 2355 2345 says it’s not under 2355 2345 says we’ll just targets the Lowe’s and just by targeting the Lowe’s says the trend is reversing down can I get out to fry 2510 and it was theirs volume there it’s not uncredible that this could extend higher and so long as 2345 55 holds should be breaking are extending our right okay folks thanks so much for all of the questions stock ideas and just basically for participating if I can be of any help during the week just bring up a stock point it out and especially if it’s any one of these are we need to update the main chart room light is this link is on the thank you very much