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[Music] you should always start out looking at the daily chart that's your get-go and if it looks timely because it can be good on the weekly chart when you look on the daily chart you go it's extended you got to be faster even if
Stan Weinstein discusses stage analysis, bull market selectivity, extended stocks, and potential short-term market corrections with TraderLion's Richard Moglen.
Key Takeaways
- Trim extended positions rather than waiting for a pullback, even as an investor.
- Stock selection and group strength matter more than index direction in this market.
- Watch for breadth deterioration and key index levels as warnings of a short-term correction.
- Price and volume action should guide decisions more than lagging indicators.
What the video covers
- Stan Weinstein emphasizes starting with the daily chart and recognizing when stocks become extended, advising traders to trim positions rather than wait.
- He separates long-term bullishness on the market from a near-term correction he sees as already underway.
- Weinstein argues stock selection matters more than index direction in the current bull market, with wide divergence between groups.
- He notes crypto-related stocks as a standout group that drove gains after the Trump election victory, though some were trimmed as they became overextended.
- He lists specific index closing levels (S&P 500 below 5960, Dow below 43,640, NASDAQ below 19,500, Russell and others) that would confirm a deeper downturn.
- Weinstein highlights weakening breadth, such as advance-decline figures turning negative late in sessions, as a warning sign.
- He explains stage analysis concepts including stage 1 through stage 4 cycles and the nomenclature of 4B minus stocks as potential bottoms.
- Examples discussed include stocks such as Mara and others, illustrating key reversal days, downside gaps, and volume confirmation.
- The conversation promotes Global Trend Alert and TraderLion's training resources as tools for retail traders.
- Weinstein stresses price and volume action over indicators like MACD and RSI, which he feels new traders over-rely on.
Chapters
- 00:00Daily Chart Basics and Trimming Extended Stocks
- 04:00Long-Term Bullishness vs. Short-Term Correction Risk
- 10:00Index Levels to Watch and Market Breadth Warnings
- 20:00Post-Election Rally and Crypto Stock Leadership
- 30:00Stage Analysis Framework and 4B Minus Bottoms
- 45:00Case Studies: Stock Examples and Key Reversal Setups
- 60:00Price Action Over Indicators and Closing Remarks
Full Transcript — Download SRT & Markdown
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you're an investor you can't wait to break the 200 AMA you got to first take some incremental off like we did in the crypto stocks I'll always think that the good oldfashioned chart is num maruno that's it all starts and then you play around
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and F tuna but just don't look around too many corners the way it looks now I think we could unless we start to suddenly get downside gaps and things we don't expect although group action was always important it'd have much more
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diverse good and bad within the group now while of course there are exceptions you have much more cohesive group action when I put a minus after the 4B I'm saying that's my nomenclature to tell you that I'm I think that you've reached
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the bottom you've seen the low for the cycle this is great look at how this morning you could have sold it over 26 that's why I talk about this Market I don't care if you're an investor you have to when you're extended the stock
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are gone from 15 to 26 in a matter of days it's common sense you're trimmed and now I'm looking to buy it again [Music] all right welcome back everybody to the tra line podcast brought to you by the
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ultimate training guide and de I'm your host Richard moglin and it's an honor as always today to have uh Market Legend Stan Weinstein uh as our guest of course he's uh the founder of global Trend alert he's also the author of this
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foundational book that I have behind me uh Stan thank you so much for taking the time uh great to see you how's it going rich it's my pleasure yeah perfect and before we dive into the podcast and we've got so much to cover with regards
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to the current markets stocks that you're watching right now thoughts on you know where the Market's going and and all of that uh we do want to mention that we're extremely excited to be partnering with you uh to bring Global
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Trend alert to retail Traders through Trader line.com uh if you're interested in that which I highly recommend uh if you're interested in Stan's thorough market and stock analysis uh you can click the link Down Below in the description as well as popping up right
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now and stand anything you want to mention with regards to anybody interested in accessing Global Trend alert through tron.com rich I think you're doing a great job we do our best here and now they just have to see what
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we have to say today and if they want to join the team I'd love it never guarantee 100% only the Liars are always right I do think we can be right eight out of ten times and if that continues
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to work at the end of the year I just think you need a creative accountant first for sure and and I've been reading your thoughts every day it helps keep me on track personally and your your weekend analysis report is extremely
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extremely thorough I think everybody can benefit from it so if you're interested in that uh check out the link below uh but let's go ahead and Dive Right In Stan it's great to have you on and I know that you've been bullish for quite
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some time on the Market's major Trend what are your kind of thoughts about what's going on right now in this moment good first of all we're going to separate the longterm from the short term long-term still bullish but is it
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important butt here you can see that there are less Indians following the chief up the mountain so selectivity is a key I know you've been reading me I've been stressing that sure we care what the index is doing but you're even more
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important than the index is my opinion is a stock selection because we're going to show them today that this is one of the most unbelievable bull markets that I've seen a lot of them going back over the decades that I've ever seen because
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you truly have bullet be markets when you look at the individual charts coexisting side by side and in some markets like I remember back 1972 going to 73 yeah some stocks were dragging while in those days the nifty50 were
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going higher but this Market is different it's unbelievable and unforgiving because if you look at we're going to show them today some of the stocks on my sale list that haven't just gone down they've exploded like you're in a make major bare market so this I
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think shows while obviously I always believe that you know technical analysis the way to have riches um it's more important than ever to be in gear because not 100% but so many of my stage one and two issues have performed great
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well at the same time I can't believe the devastation that's taking place in a lot of the stage three en Force stocks and happily we've saved people out of money by staying away from those and those people that shorting have also
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been handsomely paid yeah it's amazing how different groups have acted tremendously different you know some of the groups that have been acting really well especially since the election and we're going to talk about a few of these names crypto related stocks they've just
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been taking off and right and I don't mean to derupt you but again long I never got the short term of the market which we talk me but crypto's a good example you know that's been our number one play for many weeks so if you're
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asking me for the next several months I still love crypto trading point of view we did some trimming yesterday and the day before because some of them were just they don't trees don't grow to the sky just were too far extended and
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they're already correcting so separate shortterm longterm and when we have time we're going to also talk about shortterm in the market some levels to watch Etc because even though I'm still long-term bullish on the indexes near term I think
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they pulled the rubber band about as far as it's going to go and I think there's already a silent correction underway and if certain levels in fact Let me give them to you now if the following levels all give way on a closing basis remember
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I'm talking as a Trader this isn't a bare Market call but if for argument's sake the S&P 500 the SPX cash closes below and closing is important here below 5960 the Dow breaks down and closes below 43,6 40 the NASDAQ comp confirms on the
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downside closing below 19,50 and the q's closed below 509 you'll note I'm not even mentioning the Russell right now because the Russell already shortterm broke its downside level then you're going to see that this correction which I've been saying is a
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subtle correction become a little less subtle and and what do you make of that uh you know the Gap up across the board and really strong action up until as you said you know yesterday and and today as
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well what do you make of that strong action right after the election what do you think kind of caused that Catalyst I think it's obvious the market we're not g to get into politics here but the market loves the Trump Victory and I
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think without you know going into the economics behind it it's very very clear that from Tuesday night in the aftermarket when it became obvious that Trump was going to win the Market started moving sharply higher and until yesterday it hasn't stopped moving but
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again it's important especially for Traders to separate long-term versus shortterm and shortterm there are a lot of things I know you're very sharp rich but if you look at today's action and we're recording this I believe on Wednesday if you look at today's action
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even at best when the Dow was up about 230 points around one o'clock my time East Coast time at that time you had a very narrow advaned decline figures then as the session wore on You Close Tonight with all advanced decline figures on the
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negative side of The Ledger for the New York AMX and OTC that and so many other things tell me that yes you're going to correct but if used properly and this what people have to even investors have to learn to do some trimming this isn't
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the old days where you can just hold them and forget about it you take some off an extended stage two stocks and they're going to give you a great opportunity to buy again the portion that you've taken off as they pull back
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toward their respective areas of support so if handled properly I think it's like that old Chinese thing where crisis and opportunity I think that a short-term crisis can present us with a big opportunity if handled right for sure
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and uh this is a question that was commonly asked I asked on Twitter for for questions what they would like to ask you if they were speaking with you one-on-one and a great question and a great I think a great frame for how to
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you know analyze the stage of this bull market is if this bull market were a baseball game what inning do you think we're currently in that's a good question I would guess that we're probably in the eighth inning of the
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bull market but again I know it's going to be repeatedly said but the bottom line is I don't mean to say it over and over again but there are a lot of stocks that are in waiting for the game to be
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over their game is over so on a macro basis I would say you're probably in the eighth inning and it shows in a lot of different ways you know people make the market so much more difficult it has to
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be it's never a guarantee I don't be a wise guy but if you take a look when did we have the last new high in the nysse advaned decline line if memory serves me right it was October 16th hey we're a
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month almost past that and meanwhile you've seen the S&P and the Dow and so many indexes make new highs this is a classic sign going back over the years that you got to be a little bit more careful because you're losing momentum
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on the upside perfect and you mentioned Advanced decline line a bit earlier uh in terms of Market breath anything you want to add there because a lot of people were curious about your thoughts on you know participation the breath all
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of that in terms of how you view the markets yeah well that's another thing what we just covered the fact fact that breath is narrowing down it isn't like oh that's a major cell signal but it is a warning so it tells us two things one
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from a market point of view it says be a little bit more selective and careful here because you are you know starting to lag and secondly from a personal tactical point of view it's telling you hey you should always be disciplined but
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you know what now you've got to be even more selective and disciplined perfect and we mentioned crypto uh what what other groups and themes do you think are the strongest right now and you're personally focused on towards the long
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side right well first of all a lot when you I know you read the letter I've had a lot of software stocks and this is again in a way even though it's somewhat frustrating we all have egos and I don't
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me to be overly egocentric but I think this is the beauty most especially the fundamentalists can handle what's going on but if you take a look even within technology software not 100% but a lot of my software stocks are still rocking
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and rolling at the same time in going into the same area you see a lot of the semiconductor stocks are dragging big time and some which by my sellers they're going down with a Vengeance so you can't even just say anymore
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technology you have to go and say fine semis I don't want to do conversely a lot of software does look good and then even within software there are some charts that look bad so this really highlights the system and I think why
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our approach is so helpful because it when I wrote my book which was many years ago in fact if you look at the cover you'll see you know my hair was black in those days or whatever but the
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bottom line is you see I said in my book I called it my Forest to the trees approach and in there first you start out with okay the forest are you in a bull market you want to be more on the
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long side so that's one then you work down to groups like crypto is good even though it's going to come in at short-term extended we've had a lot of software we've also had a lot of Building Product stocks um you know a
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lot of cyclicals like that so those are good areas conversely we've stayed far away from energy which has been very poor relative strength but even there it's interesting because if you look while most of the oil related stocks are
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negative oil storage has been very bullish and has been moving ahead so again I think that our work deals nicely with what is a very very challenging market and I'm proud of you know what's taking place hey everyone just want to break in here
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to make sure you guys are aware of a special resource that we created with Stan himself the stage analysis master class this is a completely exhaustive explanation of exactly what he looks for and how he's adapted his style to Modern
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markets we worked on this uh over the past few years or so so many different examples case studies it builds everything from the foundation up and just to run through a sneak preview of what's included in this and this can be
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accessed via the link Down Below in the descript description uh you can see that we've got uh 12 different modules here uh module one build your foundation module two stage analysis covering the key Concepts and going through many many
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different examples of different stages so you can analyze them just like Stan does module 3 stock selection and ideal buy points module four Advanced technical analysis really getting into the important nuances U module five sell rules and position management how to
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actually manage the position he really goes in depth into his process and his style uh module 6 Short Selling and risk management not talked talked about enough but extremely extremely important module 7 market and sector analysis module 8 routines and mindset module 9
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covering the full system from the ground up reiterating the most important concepts for you guys and module 10 $10 million worth of charts uh we cover stage one stage two stage three stage four full cycles and also with each of
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these modules we include a special challenge so you guys are not only learning them material but applying it to your own trading and each of these $10 million worth of charts includes excellent excellent model books of the greatest winners of all time they can
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really go back and study the important nuances that Stan looks for and apply that skills into real time in the real markets uh module 11 full discussions covering all the exclusive interviews that you have as a part of this master
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class and module 12 key resources and additional Q&A so thanks so much for uh allowing me to break in here definitely check out this resource down below the stage analysis masterclass and enjoy the rest of the interview take care bye
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perfect and and the last question before we get into your trading style and and get into many of the the stocks that I know you wanted to go over um does this Market remind you from anyone in the
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past is there any are there any kind of key similarities to markets that you previously traded yes or no to a degree because I've never seen a market that's this diverse in so intense but to some degree as I said before in 1972 73 you started
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to lose a lot of stocks even before the market reached its top in early January of 1973 and then the nifty50 went for a while but it had narrowed down viciously and eventually I got them all so a
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little bit like that but this is again more intense the other Market I would say is somewhat like and these are a little bit like um I would say in late 1999 going into early 2000 that was were the days of the
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internet boom internet bubble and a lot of stocks running while Market you know many many stocks had topped out and then eventually the whole thing became a problem I'd say it's somewhat like that um but this to a degree I can't drive
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the point home strong enough is the most diverse Market because it is just like oh some stocks are lagging which we're going to show them tonight you are having stocks that if you covered up the indexes you would say
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oh my God you're in a bare Market conversely is the other things that's going to wet your appetite So This truly is the most diverse split Market that I've ever seen perfect and um getting into it a big question that people had
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as as you know thousands and if not millions of Traders has have read your book what are some of the key differences between the markets that you know were in existence back then when you wrote that and now how have you kind
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of adapted your approach I know in the past you've talked about everything's faster you've Incorporated the 50-day moving average and you're much quicker to take profits what are some of the key things that Traders now should uh you
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know focus on compared to when you wrote your book well you first of all you just did a great job you encapsulated most of my answer one back when I wrote the book was was 1987 going to 88 um I would say
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I did a little trimming every time you broke the 50-day moving average now with the intensity of moves I tell people and I personally if it breaks the 50-day ma I don't care if it's just going to be a
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one or two month correction I'm out of there I don't want anything with a black cloud so I'm much faster to move you have to because this an incredibly fast market so I think that's probably the biggest change the other one in those
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days I didn't use stochastics or macds for Traders I think it's important which we've used several years now the macd and also stochastics but the main thing to get across in addition to that is like we're talking about the crypto when
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you when you have a good profit and something becomes extended in the old days I say hey if you're an investor you're fine just hold it if you're a Trader you know take some off now a good example you take a look like we had um a
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lot of the crypto stocks and in there some of them had such moves as of yesterday on Tuesday that I advised clients to take some good profits there and in just 24 hours you see is happen is unbelievable so there's going to be
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another buying opportunity coming up in the days ahead but to me even an investor has has to say hey I'm going to move incremental this tape because just to sit by idly while you see these incredible wild moves I think is
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ridiculous perfect and along those lines of dealing with extended stocks we covered in the last podcast we did your key reversal days and and that's a sign to take money off the table so we'll have the link to that podcast down below
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we won't explain it again today but highly recommend checking that out um and another question people had along those lines of how you've kind of adapted to changing markets is are you doing more of your analysis these days
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on daily charts versus weekly charts and do you use any different moving averages like even shorter term than a 50-day moving average to to help you guide your your thoughts yes and yes so here we go first you should always start out
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looking at the daily chart that's your get-go and if it looks timely because it can be good on the weekly chart when you look at the daily chart go it's extended so first you study the daily chart you
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find a good chart and a good group and you start focusing then especially if you're an investor you focus next after you've done your daily chart work on the weekly chart for that specific stock and they may take a look and go okay it's
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breaking out at 10 for argument's sake but you look on the long-term chart you see a well bunch of resistance at 12113 it may do for a quick trade you're not going to become heavy in it Converse ly
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you take a look at the weekly chart you go wow there's no significant resistance till say 18 or 20 that's both a trade and an investment so it shouldn't be one or the other it should be first a
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followed there after by B perfect yeah the weekly gives such important context to everything that that's so true and one other question people had and last time when we were going through La charts um many of your entries were on
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gaps because as you've mentioned before you know gaps mean there's a tiger in the tank they show there's power there there's there's strength behind a move how do you personally like to trade gaps and how do you manage risk on those type
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of buys okay well first of all again Common Sense which I used to kid around when I was on the seminar circuit I'd say is a rare commodity on Wall Street but Common Sense tells you say the stock
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was 20 and the volume comes in it gaps at 21 that's fine do it but conversely like happened the other day with some of the crypto stocks that we in they open with such huge gaps I would only buy
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back on the correction now while we're talking about gaps this is another misunderstood fallacy um some people think every Gap has to be closed first of all that's not right if you go back to 1962 when I was
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a young before I really got the market you'll see that there was a gap down at Dow Jones I think was 550 or 570 something like that it never was covered you know so and that was a very good
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sign gaps that aren't covered that they come down and try to close it but they don't that's really an extra special bullish sign that there's a tiger in the tank so that's a very good thing so first it helps you you may get initial
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by some then if you pulled back and if the entire Gap is closed but you don't violate you know important support you'll hold what you hat but I wouldn't buy more conversely if it comes back and I think you're going to see in the next
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few days because there are a lot of gaps on the charts some of them aren't going to be covered and those are the ones that you really want to focus on especially if you see them start to round over and hold above the Gap that's
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exciting and I think you're going to get another good buying opportunity and many of those was Gap stocks perfect and another question people had was if you had any recent 4B minus trade which is basically your setup on a really beaten
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down stock there's a bunch of criteria which we went over last podcast uh but have you traded that setup recently there's been so many stocks working well that there haven't been that many but I'll interiew yeah exactly again you're
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you're leading great the bur of all I'm not I haven't put any 4B minus issues into the my issues um because there's so many great stage one and two stocks I don't want to trade down to things that
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are yeah I'll get a quick trade out of it so that's number one I haven't done it but there is one stock if you can put up Dexcom I think will show us so many things about the you know oh that's
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tremendous first of all let's define what a 4B minus stock is that you want to play number one certain criteria it has to First have fallen sharply and have room to trot on the upside you can see if this breaks out it does and in
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fact if it closes above cleanly above 76 take a look it's clear talking about gaps it's clear sailing all the way up there to the moving average so that's it so you got to have a lot of factors one
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you have to first have room to trot two you have to made some kind of a base and this has an intermediate term base even though it's still well below it's long-term moving average so we're talking about trading not investing that
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you know so that's the second part of it you want a base you want room to trot and you want to have moved above or about to move above the 50-day moving average which in this case it's already
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done so this would be a good example if you wanted to trade a 4B minus stock and when I put a minus sign in the issue on a 4B stock again let's define terms stage four is bad 4B means it's late in
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stage four when I put a minus after the 4B I'm saying that's my nomenclature to tell you that I think that you've reached the bottom you've seen the low for the cycle so that's even though not a good long-term investment that's a
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good potential for B minus stock now I don't know if you can show because I remember this chart if you could go back and show me a longer term we could do a lot with this chart yeah where would you
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like to go great great great so you've done it I can zoom in wherever you'd like yeah okay okay first let's go back a little bit more to the left you know let's get rid of some of the stuff on
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the left and have more on the right oh more on the right okay more on the right there we go okay that's perfect now take a look look at all the things forgetting now about the 4B minus deal which was
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one point let's see other things that we can learn in this chart lesson first take a look rich there like I would guess that was late 2021 look at that little Head and Shoulder top you're right on right there
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little Head and Shoulder top so it had been a wild move but you have to get paranoid you see The Head and Shoulder and on top of everything else we've been talking about 50-day moving averages after you made the head at that run up
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to the top yeah perfect you are one hell of a great teammate look at how when it broke the 50-day ma that not only warned you like hey I think we should get out of the stock but for
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confirmation look at how the next two rallies failed right underneath the 50-day which you're saying yeah now that's great yep yep yep that's telling us oh we really have a problem and then when it broke below I assume is that the
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150 what is that next this is the 200 day moving average this great okay so right so first it broke the 150 which you don't see there then when it broke the 200 that's fine but again going back
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to what you asked me earlier in the old days you might have said fine you just do a little trimming and if it breaks the 200 get out in this market it's ridiculous Head and Shoulder top broke the 50 out of there once you broke below
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the 200 forever hold your piece and take a look after got smashed on the next rally although it temporarily for a few days moved above 200 it failed near the 200 and then it broke below the 50 and
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it got creamed big time so there a CH like this can show us so many different aspects and it's what I said earlier that we really make the game harder than it has to be because our emotions come
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in and we start thinking what is parl going to do and this and that I mean if you're just kind of simpleminded and you go follow what the charts are telling you again you're not going to be right 100% you're going to
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be right a hell of a lot of the time and to me which I've used this analogy so many times over the years it's like when you're playing Blackjack you don't if you're really a good blackjack player you don't do thinking and reflecting
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when you've got 11 and the dealer has a six which is the best hand that you can have you double down now you may lose that next hand but if you do that consistently you're going to be right so
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much more than you're wrong and it's the same exact play in the stock market but the fundamentalists get very upset when you liken the market to trading cards or you know trading you know Blackjack Etc and it really from a systematic point of
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view is the same concept there's a really smart guy who I learned a lot from who said something along the lines of the tape tells all I think basically what you just summed up you know it can be summed up so simply
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and uh by the way it's pretty cool in De you we built in um some Stan Weinstein stage analysis recognition and this we're picking this up as a 4B minus uh which is which is very cool right here
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so that that's a cool feature that we've got um Stan where do you want to take us now I've got your positive recommendations your sell recommendations your negative charts your positive charts where would you like to take let's first this is great
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because I love work with you and I think that we're doing a great teaching lesson here and I love it that's my legacy hopefully many many years from now when I pass into the great boardroom in the sky that's what I'd like to lead people
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with so let's in today's lesson see it's kind of like if I was teach if I was a tennis player and I was teaching you tennis you're first starting out and I say here's the backand backand forehand let's go through charts that worked out
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that we recommended big time and it's not just the Brad although we all have egos but it's more to train everybody's eye to see so they can spot it that these great moves are and happen stance these moves are quite
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predictable in the following exactly what I wrote about many decades ago so let's go through some recommendations and I know you're a good you you tell me what's up and we'll do it together yep we've got alsn here Allison
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Transmission good so take take a look can you give me a little bit more on the left yep of course okay a big base here there there you go first take a look you had a intermediate problem you got out
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and don't ever worry about being whip sored it's better to get out and not suffer and have to reach for the mocs and then you come back in so it was a great stock but then showed them on the
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left side there how it made that top it broke the 50-day ma it gapped down you were out of it you weren't hurt then it reformed and look at across let's go through that old series of highs back
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there in the September October period when you broke out above there and the volume came in volume is important again that'll show you tiger in the tank look at that volume that came in look at the Gap boom look at the big move and again
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I think that it followed the the trip perfectly and then you got out because you broke the 50-day ma and it was fine to get whips sword went back above the 50-day ma you could go back in and you
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had another great ride so I think that chart shows us a lot let's show them some more while I'm going to take a drink here yep of course okay what is the next one rich here we've got B Block oh okay great so
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here we have a crypto stock look how it made that double bottom in the August September period and it was meaningful that the second move down held the 200 day in textbook fashion you could do a little bit there
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with a close stop loss if we're wrong then when you broke out above that prior little top it took off nicely now you take a look and you see today I had Traders take some off I think you have a
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shortterm key rever rsal day and when it comes back in I think this has the potential to come in I'm just guessing something like 42 43 into the Gap area but I don't think it's going to cover the Gap I think it'll present another
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great buying opportunity hey everyone how's it going I hope you guys are enjoying the interview with Stan I just want to show you guys a free resource that may complement this webinar if you're interested in stage analysis and
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want to learn more about how Stan analyzes charts and get even more examples more tennis balls hit at you we have a free resource the stage analysis model book you can access it via the link down belad in description it's also
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popping up right now and it's 100% free and by signing up you get access to key lessons about stage analysis the stage analysis cycle a free webinar here and then you also get access to all these different model book examples and to go
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through a few uh they really get into the nitty-gritty about what you want to look for uh they throw even more excellent examples in terms of price and volume action what you should be looking for and important nuances that Stan has
Speaker A
developed over the years looking for gaps looking for holds of moving averages and just they're great examples to study to train your eyes to spot the next great stage two breakout so definitely check out the link Down Below
Speaker A
in the description uh to access this resource for free perfect next up we've got app and this has been a a monster I'm sorry which one was this R AP app a Monster again look at where it broke
Speaker A
out above you know its area there again look at how the volume came in and um the rest is history it was beautiful and this one didn't even come back Bel that's another thing it didn't even come back close to its 50-day moving average
Speaker A
before gapping again that's a super bullish sign would you be taking some profits up here what would you be looking okay yeah I would take a few chips off and then take a look let's see have Wednesday Tuesday yeah break out
Speaker A
use Monday's low there you see that yeah that's it Monday's low closing below that I would trim it harder and then as it tries to cover the Gap and again watch it I think it's not going to cover
Speaker A
the whole Gap but it's going to make an attempt to coming in again I'd be a buyer but this is another thing I think they we doing such a good job of you know train training here take a look and
Speaker A
look at how each of the last several days as it went up the volume is declining so that's another little this is for Traders not investors that's another little hint that you know what don't be a pig take some off it's losing
Speaker A
some upside momentum but it's still good long term perfect next up we've got ADP all right now let's study this guy because all of these which worked out so nicely teach us something you take a look boom it broke out above that
Speaker A
February March high back there it was sort of a parallel line I mean the horizontal line then it took off beautifully and it's into the great beyond let's go to where we are now again and this is why I feel we could
Speaker A
correct separate the scalping versus longterm longterm this is a Picasso shortterm it feels like hey if you close below Tuesday's even Monday Tuesday's lows in there you should start to do a little profit taking but just trimming some and again it's going to try to
Speaker A
cover the Gap you have so many extended stocks here with gaps that's why you see in the last 48 hours the tape has become so messy and churning you know it's got to do some consolidating and digesting the terrific
Speaker A
move and for this one are you buying the breakout through this high or are you starting near the 200 day moving average and maybe recommend it to Le broke out gotcha cool all right next next one we've got ax on another really nice
Speaker A
breakout on on pickup and volume right here right and this is why as we're showing one after the other it as I use the analogy of hitting tennis balls you know when you first start out playing tennis you're thinking is it a forehead
Speaker A
that is their backand but after you played a while it's instinctive well it's the same damn analogy here it should be instinctive and that's why we're doing all this work teaching look at again in every case first it held the 200 day and you could
Speaker A
buy some down there which I didn't but it could be done with a tight stop then as soon as you got that Breakaway Gap recommended it taken off thereafter you got a second Gap here this is a thing of
Speaker A
beauty a joy to behold so again if you train your eye after a while it's like yeah I see it you know when you see these good patterns you just do it rather than thinking about oh does my
Speaker A
broker agree with me you know are the fundamentals good forget it the market is smarter than all of us and O at times over the years I've made mistake it's because I've overthought things rather than just going with the flow so just
Speaker A
remember it's a cliche but a true cliche the trend is your friend Perfect all right next up we've got Bill same exact thing now this one was really easy because look it was coming through the 200 day moving average you
Speaker A
Gap the volume started building up and you know the rest is history and it's recent history and this will be a buy again pulling back but look at how and this is another thing we keep up close to 100 indicators which we give the
Speaker A
input in each you know weekend issue of the important indicators that should be followed but you know that's our job I would say the average person even average portfolio manager doesn't have to do all that work number one I do
Speaker A
it for them but number two again common sense look at how many stocks are on stilts when you see this this to be short term I'm only TOS a Trader is better than all the damn indicators this is common sense saying hey how far are
Speaker A
you going to stretch these things before you take some profits and they correct so I think that over and above a lot of indicators like the stochastics and now overbought and other things just common sense shows the probabilities no
Speaker A
guarantees but the good probabilities are that you're going to correct here and just be ready do your homework and when they come in while other people will start worrying about oh my God here we go maybe we're starting a bare Market
Speaker A
you'll be ready to scarf from up perfect all right next one we've got uh docs dos and here's breakout right show can you just move it back a little on the left so I have I see the right yep
Speaker A
that's perfect yep again this is same song different verse look at where it broke out you know back even before the Gap how if you connected those tops going back to February right you're on top of it February then June or whatever when
Speaker A
it broke there look at how the volume came in it's repetitive look at the Gap whatever now you got a second series of gaps it's not a coincidence that these all have been big winners for us let's do
Speaker A
next one yep we've got uh g d oh now here's a good and this is interesting because and and at this one I've taken profits for clients a little more aggressively chart is still good but I don't like the way the group is acting
Speaker A
and again you gotta you know use common sense you know that Trump is not exactly and you're putting Robert Kennedy Jr which he will be in there he's not exactly friendly to the pharmaceutical companies so this is still a good one
Speaker A
and it's worked out well but I wouldn't buy this correction I've had them trim it and I would look for something else like in the crypto areas it comes in rather than in the pharmaceutical even though this has been a big winner I
Speaker A
think that you want to keep it simple and you want to put all of the odds in your favor perfect next up we've got pod I'm sorry which one is this Rich p d oh good okay again look at how it broke
Speaker A
out above that line there boom right above its horizontal line look at how the correction respected the 50-day moving average and the rest is history and this one I would buy as it comes in and tries to cover the Gap especially if
Speaker A
it doesn't cover all of it this one makes more sense to me and what what's the reason behind that why would you look to focus on one versus another one oh just because of the group I didn't like Gilead being in the pharmaceutical
Speaker A
group even though it's a great chart gotcha all right we've got idcc all right here we go first that's it first you broke out you got the volume coming you're sh where the volume came in and the Gap look at how twice
Speaker A
now it respected at both points the 50-day ma beautiful and now I think you have a little temporary reversal going on I think it'll be another good buy as it pulls back to the top of that recent Zone in October if you go up there where
Speaker A
yeah that's perfect as it pulls back if it holds there this is another thing you make up your list and these are all good teaching things you make up your list of potential buys and now let's say it
Speaker A
comes back and it doesn't even reach the area that you showed them with the right now with the spotter but it holds a little above it that's great but let's say conversely it comes in and it holds the 50-day ma I wouldn't buy it I want
Speaker A
to stick with the ones that have no black clouds and Obey like a kids so boom I want to see this one hold at the last breakout Perfect all right next one we've got p a yo Po and here's the breakout on volume
Speaker A
right here you got there you got it one after the other broke out in volume had the Gap it's beautiful and again look at it's making a little baby top there and as it comes back to try to cover the Gap
Speaker A
I think it'll be a buy again but you see and this is why I keep stressing the market feels like it needs a little correction here and obviously never a guarantee but I know the good odds again this is 11 versus the dealer six you're
Speaker A
extended it probably comes in and you should be making up your list so you can use the coming correction to your advantage and for this one are you buying right near the open on the Gap up are you buying throughout the day how
Speaker A
are you handling it yeah yes buy you only got to chance to buy in fact that was valid only got a chance to buy half of the position wanted um because it didn't really give you a good second
Speaker A
chance but fine you got some on you know half a loaf is better than none Perfect all right next up we've got vicr viscor here we go same thing broke actually first had the little break out there you
Speaker A
know go down into the high over the September little Peak yep it's right here yep yeah you see first you could do a partial then when it broke out cleanly and closed closes are important and the volume came
Speaker A
in there you're right on then you could buy harder and this would be another opportunity but it's going to come in as it corrects back in and this is kind of what you're looking for now with these extended names a pullback it holds and
Speaker A
then explodes back up is that right exactly and and it shouldn't hold it shouldn't come in all the way to that recent bottom if it does you don't have to get out if you're investable you don't want to buy more but I think let's
Speaker A
say for argument sake I'm looking I don't my glasses on I think it'll be about a 48 is maybe a 48 49 kind of pullback holding in there would be very healthy yeah and the 50-day might rise up to me it around that area so that
Speaker A
makes sense big see it all will clease together yep all right perfect where would you like to take us now we've got your sales we've got your positive recommendations the CES that work then we'll give them new stocks let's do it
Speaker A
all right here we got yeah okay so we're halfway there now we've done the backand now we're going to do the forehand look these are all sell recommendations we're not talking about from two or three years ago this is
Speaker A
right now in the middle of this RI roaring bull market just look at how important it is to be selective and to stay in gear with us and to stay away from any of the stage three and four
Speaker A
stocks that we bring to your attention take a look first you well let let's trace it if you go back to late August here you'll see where first it would moved back above you know first they gave a warning was below it it was below
Speaker A
the 200 day moving average then it moved above it made a little bit of a top but it was still a Ser a second rally was lower than the first rally and even the first rally was lower than last March so
Speaker A
this was a problem and then boom it opened with a gap on the downside and you didn't want to be in this guy for sure and again you see a series of gaps a second gap down and this is in the middle of this tremendous
Speaker A
bull market let's do the next one all right we got ADM here okay now here we go look at same pattern first it gave us a warning that's good Rich first it gave us a warning after it made that little Head and Shoulder top
Speaker A
there back in July August and then it broke the back below the 200 and the 50 then the failing rally for a nanc got above what was still a declining 200 AMA and you you as soon as it came back
Speaker A
below it if you're in it you got to get out and then it broke the 50-day and look what happened thereafter and this again is the middle of this bull market thank God we weren't in it yep here we go
Speaker A
ASC now you you start to see the repetitive patterns just like we saw all the bullish guys let's go back because this tells an interesting story F that's great first go back and look look at I would say it was probably April May and
Speaker A
you see no no yeah yeah yeah yeah that that April May yeah y okay yeah so let's put that good first look the stock is fine so go to the high this is the field we're trying to develop in them then it sold off and it
Speaker A
held above the 50 day I mean that's great now the next rally failed to go above the other one but that's still like oh it's not terrible but boom show them how it not only then suddenly broke below the 50 day ma but it did so on a
Speaker A
gap you have to get out of this stock even though it had for an nanc moved back above it we're not buying this and thereafter look what's happened to it you would think you're in the middle of a rip roaring bare Market it's just been
Speaker A
destroyed and there's so many that have been on to sell this like this which is why I'm so proud of the methodology helping people go through this terrific terrific split environment let's go on to the next one yep we've got aen oh
Speaker A
this is a classic you've got show them there The Head and Shoulder top textbook boom boom boom right shoulder you want and you wanted to get out of it well before it blew up look at how it looked
Speaker A
great in August and then let's follow it because this this is the field you want to develop in this market you can't just look at your stocks once a week so you on weekends so you take a look it was
Speaker A
good and suddenly got a downside Gap that was like somebody tapping on the shoulder and saying hey I'm a little concerned let's do some trimming then a few days later boom look it broke the 50-day Ma I'm out of here this isn't
Speaker A
like the old days gone then look if you didn't get out how the failing rally next rally didn't even get close to the 50-day a and then boom look what happened thereafter when it really hit the fan yep you've got a bunch of
Speaker A
downside gaps right there perfect and the these moves are unbelievable in the middle of this bull market now what's the next one rich Biogen B iib an Institutional favorite in fact I got some blowback from some people I
Speaker A
recommend that as a sale but you take a look we go back a little more to the left yep yeah yeah okay good good good look how again it's text Booky and it's repetitive time after time it was good
Speaker A
you had the double top there back in May June yep that's it you broke the 50-day M you should have gotten out it broke the 200 you're gone and since then forget for one or two days that you know
Speaker A
in July it might have gotten a tat above it it it was a declining moving average anyway it's been a disaster and again each of these things was predictable and it followed a good probability game let's go to the next one yeah I just
Speaker A
want to point out reject at the 200 day here 200 day here A bunch of times and then you got the gaps down so it's the same template over and over over and and look at how after that last Gap in
Speaker A
August as oversold as it got it never even forget about getting above it never even got back to the 50-day ma that's a horror show all right next up we've got Crocs ah this I'm very proud of because
Speaker A
there's another institutional favor first let's go there and you see like in July it's a new hide it's still you know go back to last July last July it's still at the top there no no go go I'm
Speaker A
sorry it's my bed yeah you're right in the area it's a Head and Shoulder so that go to the Head go to the head right there right here you got it look at your how you had the left shoulder the head
Speaker A
you twice broke the 50-day moving average this is a classic stage three top and boom look what happened recently thereafter Perfect all right next up we've got LPG here this as long as you're not long this and if you're out of the way and if
Speaker A
you're short it was a thing of beauty or joy to behold again show them back when it make makes it the next high where at that point you're still feeling good about it then this is why gaps are so
Speaker A
important look at how suddenly boom you got the Gap look at the volume that's like somebody hitting you at the side of the head and saying hey something is wrong here and you should have got for sure you should have first
Speaker A
reduced on the Gap and then when it broke the 50-day ma you should have gotten out and take a look since then it's never even given you a chance to get back above the 50 day ma the rest
Speaker A
has been history you know it's it's amazing and I'm very proud of that call all right next up we've got evh here all right here we go same thing look at how once it broke down the 50-day boom and look what happened there
Speaker A
after the volume came in just terrible one after the other iclr again same thing and now this is important look at how this broadening top played out you went so long going sideways it never completed a new breakout and it whip back and forth
Speaker A
through the 50 day I tells you're in stage three and then once it broke the 200 the rest is history and it's gotten destroyed MRK another Pharma exact exactly now this is a perfect example of weak stock within weak group first show
Speaker A
them how even before it broke the 200 AMA you broke down from got it you broke down from that area um you had that downside Gap a little you got it you had the downside Gap you had the volume come
Speaker A
in it's repetitive and this is why I'm taking all the time with this teaching right now um it just is so obvious and again so many Market players even a lot of professionals make the game and I do
Speaker A
think it's a game harder than it has to be all right next up we've got qrvo okay you know I'll let you take over here show them boom how first it made that top it broke the 50 the F the rally failed next at the 50 it
Speaker A
broke the 200 it's gone to hell ever since the volume came in there are so many and I could have shown you another 50 charts like this that we have recommended a sales and this is why when you ask me about Mark a prior
Speaker A
Market yeah it's a little bit like 7273 in terms of narrowing down but I've never gone through something like this where there have been so many accidents and so many good for True hedge funds who most cases are not doing a good job
Speaker A
so many downside plays in the middle bull market that they could hedge with versus their good Longs this Market is made for a hedge fund that knows how to play the game Perfect all right next up we've got
Speaker A
RGN you've got the breaking 50 right here yep you got the same thing look at how you got the failing rally you broke the 50 day you were gone he broke the 200 you better have been gone and they
Speaker A
killed it perfect all right next up we've got uh your positive recommendations let good now let's go to you know it's one thing to look at history now let's go to what I think are things that we should put on our buy list now just call
Speaker A
them off for me so I know which ones we're talking about Yep this is dcgo and by the way I have your note down here that you sent over so people can reference that as well oh that's great
Speaker A
okay oh you you do a great job so anyway it's extended coming back in I'd rather buy it coming in which I show that area and um if it broke out tomorrow above the 445 close I wouldn't want to do more
Speaker A
but if you buy some coming in and then let's say over the next two weeks or so it does work under that level and then it breaks out I would then double up on a breakout again use common sense
Speaker A
perfect we've got drvn okay here we go extended you want to buy the pullback watch how it acts near the Gap perfect ET now this is for more for conservative players this is not a rock and roller but for people that want to get into
Speaker A
something that's a nice easy slow mover this is one of the few oil rated stocks that I do like and by the way talking about oil let me just reassociate for a minute um the xop is the ETF
Speaker A
for the oil oh you're great put it up now don't do anything yet I'm just giving you a head start that I always go by feel that it feels like you may be starting to shape up now even if it
Speaker A
breaks out it's going to be a B+ not an A+ but if it breaks out and closes above the Tuesday high of 43 spot five 5 Z yeah but closing above that I think you're going to start to see some oils
Speaker A
come to the four as they take profits in other things that are extended so that's if it never breaks out don't buy any but that I'm just trying to give you all the thoughts in my head I think that could
Speaker A
be coming so anyway but this is a fine stage two stock conservative buy and pullback yep next up we've got gme oh I like this a lot now obviously game works is not for widows and orphans but if you want to play the speculative
Speaker A
game I think it's going to come back once more but if it's really good I don't think it comes in much more about 24 coming in I'm gonna have clients buy some more and then again if it does work under
Speaker A
today's high and maybe a week or two from now it close above that as long as you know you're dealing with a speculative stock can we show a weekly chart of this and I'll show you why it kind of interests me I want to go back
Speaker A
longer yeah okay here's the power move yep yeah good if you take a look this if it breaks out cleanly above there it's down from big high there I'm not talking about going to new high but this could
Speaker A
very easily go back into the mid-30s with I think risk of about 22 23 I think that's an interesting speculative play and that area that you highlighted here lines up with these highs It lines up with this prior high
Speaker A
so that's why you picked that yep right exactly and again if it comes into like 21 don't buy it but if it holds obediently yes I think it's a good one perfect we've got pen Penn oh I like
Speaker A
this this is showing good relative strength and it's been a dog for quite a while but it's interesting because a lot of my Casino recommendations in the last week or two have rocketed ahead I don't know know why but I don't care why so
Speaker A
this is in the right group and I think you could buy a little bit coming into a 20 20 plus and then if it does a little bit of more work and closes above today's high of 21 spot 75 I think it's
Speaker A
an interesting Play Perfect next up we've got syk here this is this is more of an Institutional kind of favorite but I like it on a pull bats it's stand the near term don't buy it up here but I
Speaker A
think that this on a pullback I think we've got the wrong levels in there yeah I think I've got the long the wrong yeah it doesn't matter I remember this coming back in like 3 375 380 boom if it holds in there
Speaker A
I think it's a good quality start which is the antithesis of the games Works yep perfect here we've got uh Disney dis oh now this is interesting thank God we covered the short and this teaches us so much it was a great short and it's just
Speaker A
people don't understand you know they make the game harder shorting is just reverse game of buying so look how terrible it was then when you came down there in September it was a warning that you didn't come as low as you did in
Speaker A
August then when you made that little Gap above the 50-day ma short covered you see it yep you're right on then look how when you then had the next pullback look how it respected the 50-day ma great now look how you got that upside
Speaker A
Gap and look how now even today in the messy market look at volume coming in and it closed above our level there I think that's an interesting conservative play and was this was this broken down enough to count as a 4B minus because
Speaker A
this is a pop above I didn't honestly play it and it didn't make a big enough base for me but I did Cover the short you know and sometimes you can be try to be too perfect you know that's my
Speaker A
neurotic Jewish nature I always try to be perfect but um for sure if you were short you had to cover again the rules and this is why I enjoy working with you and teaching everybody here if you follow the rules of course once in a
Speaker A
while we get whip Sor nobody's always 100% right but we have such an outstanding track record because you know people say nice things about oh you're genius I'm not a genius but you know what I know my stuff I'm the most
Speaker A
disciplined player that you'll find and if you're just disciplined then you have the good rules it works perfect next up we've got wbd Warner Brothers right again the little Gap there recent Gap as it comes in and tries to fill the Gap it's not it's not
Speaker A
a quick trade I think it's another investment and again it may even be working with Disney who knows because the simp similar group so the market is very and that's another thing I didn't think of I love as we talk it kind of
Speaker A
expands out in my head this is another thing that's different in the old days I went through the 70s and 80s then although group action was always important you'd have much more diverse good and bad within the group now while
Speaker A
of course there are exceptions you have much more cohesive group action and I noticed when a lot of my stocks turn out to be you know sells in a group they they almost all screw up conversely if they Buys in a group they almost all the
Speaker A
work and there's a reason for that I think the ETFs do that for us perfect next up we've got the crypto related stocks which had have the big reversals today but have I mean this moved up 80% in just five six days here
Speaker A
exactly and as these come stocks like please come back in which one of my cryptos was this this is coinbase co okay oh coinbase okay this is a wild Trader um right so we have it it's extended coming into my 275 280 285 Zone
Speaker A
I think it will be a buy again but short term it's topped and it should be bought on a pullback don't buy it tomorrow morning next up we have C RZ core scient scientific okay let's take a look I like this a lot
Speaker A
and pulling back in toward I'd say 14 15 I'm gonna be a buyer again perfect we got Mara as well yeah this is great look at how this morning you could have sold it over 26 that's why I talk about this Market I
Speaker A
don't care if you're an investor you have to when you extended the stock had gone from 15 to 26 in a matter of days it's common sense you're trimmed and now I'm looking to buy it again I'm guessing
Speaker A
it's plus or minus 20 20 and a half holding above the Gap I'm going to be a buyer again perfect so those are the the positive names and charts and we've got the negative ones here and I can let you
Speaker A
know uh here we've got AOS here here we go AOS look at it it did its thing you had the downside Gap D yada yada the same thing it broke below the 200 then the 50 and look what's
Speaker A
happening in the middle of the bull market terrible don't go bargain hunting there yeah so this would be on a a failed rally up near 7476 what you got Mark right exact exactly right yep all right next up we've got American Eagle
Speaker A
uh on rallies toward the 19.5 to 20 Zone here right it's oversold it's going to Rally I'll be surprised if it gets much above 20 so I think something like 19 and a half 20 coming up it's a sale you
Speaker A
shouldn't be in it anyway but if you are sell the rally all right Stan next up we've got Avy so breaking 202 and more aggressively closing below 2011 here right and on a r spot on and on a rally
Speaker A
probably up I'm guessing about 208 209 up there it's also a sale but look again this is so important how many inferior charts there are and this is why I have no patience where a lot of people and
Speaker A
even some of my institutional clients will be buying stocks like this which I find ridiculous I think I again I always talk in analgous form that to me this is like getting hit in 20 in blackjack you may pull an ace but it's a lousy bed and
Speaker A
look at this Gap that gets sold breaks the 50-day this is this is a warning sign even before all of this happens to me right exactly exactly and that's another thing the market really so often foreshadows what's coming if you're just
Speaker A
it Whispers in your ear if you're just willing to listen Perfect all right next up we've got CR us okay take the look first we had broke the 50 day ma you should be out you had the downside Gap you had the failing
Speaker A
rally that couldn't even get back to the 50 and this is why these days I don't want to wait for the 200 but look then you broke the 200 I think this is going even lower if it closes below that prior
Speaker A
low perfect next up we've got CL here similar story here break of the 50 failed rally Gap Downs we're we're throwing a lot of the similar tennis balls but they're important tennis balls exactly and this is what over and over
Speaker A
again if you get it again it's just following the rules of the game these are not accidents that just come along these are accidents that could be avoided Perfect all right we got C okay this is oversold so it's a rally
Speaker A
up sell it on a rally up maybe 32 33 but this is another loser and look you made that Head and Shoulder top look how you broke down below the 200 d ma first the 50 as it weaved on the right shoulder
Speaker A
and then it broke the 200 day ma another loser and this is why it's such a mistake where people will think like hey look how far it's already come down I'm gonna get a bargain I don't want bargain
Speaker A
okay I want to have things that have good probabilities Perfect all right we've got DHR here okay again look at how first you had a triple top never got above that high from last July August back there then you broke the 50-day ma
Speaker A
which is should as a warning there was one more rally there a gap down on increas in volume boom again it followed the textbook perfectly and it's another loser if your long y perfect dks oh this this is still early in its
Speaker A
development but let's follow I think we can teach him a lot with this first look on the left side if you look like June July why or you have first it was right that upside Gap MH but look at how it
Speaker A
then broke down below the 50-day ma now it went up again then look how it broke the 50 days something erratic like this you don't want to be in okay it can't make up its mind but it finally
Speaker A
did make up its mind look at the high the go up to the high there and once you got that key reversal day you the downside Gap and the volume came in the rest is history then below the 50 and
Speaker A
boom the 200 and I think this still has a ways to go and this is is this a sign of a classic stage three top where you've got all these gaps up and down absolutely yes yes yes and you know what
Speaker A
and I used to say that also when I was on the sem circuit the bigger the top the bigger the drop this is a perfect distributional top yeah perfect yeah print this out guys this is this is one
Speaker A
to be studied all right we've got dbd here now here's a case of going from the penthouse to the ouse in a hurry and it's not even done yet take a look it was looking okay boom you had that what
Speaker A
I call an island reversal it made that new high but showed them the island reversal they're pretty rare and they're they're Wicked first it gapped on the upside then it gapped on the downside leaving that Peak day as an island and
Speaker A
if you go back islands like that usually lead to very very bad things I remember and oh God I think it was 1962 when I was first learning to chart Avet which has been a good stock now but AET in
Speaker A
those days had been a run had been a big run on the upside and then it had an island up on top and I'm telling you it didn't get above that for de decades and I'm telling you so here we go you've got
Speaker A
this is still not even in stage four it's stage three because it probably needs a little more distribution but you don't want to be in this and it'll probably rally back up once or twice the 50-day ma and then once it closes
Speaker A
cleanly below the recent low just from a few days ago it's going to go into stage four and a problem stocks going become even more of a problem perfect we've got iff another quality stock by now everybody should know look first
Speaker A
it made that highest high so go there then you broke for a second time the 50-day ma the first time it broke the 50-day was still going up so you maybe reduce it then it broke the second time
Speaker A
it's flattening out and then boom if you're still in it you got the downside Gap and you got the volume and now you had a break of the 200 day then look at at the failing rally where right to the
Speaker A
200 day and after all these years it still amazes me how often it follows the textbook perfectly it f it failed right to the silly millimeter right at 200 perfect we got L another Pharma company I'm early here but anybody who's
Speaker A
listened to me I've gotten them out of LL again you can see why you've got the series of tops in stage three then you broke the 50 day ma you back back above it once you broke it a
Speaker A
second time you're out of there then oh you got the downside gap on volume you got the phony rally up this is still like a stage 3B you sure shouldn't be in it and if it breaks below that
Speaker A
769 I still know some institutions that are GNA get hurt and up here I want to highlight these these closes here what does that tell to you where it tries to push higher and then closes lower low in
Speaker A
the range is that a subtle sign of distribution that you like like to pick up on for more Traders than investors you just beat me too I was to say you're so sharp but that's for Traders yes as a
Speaker A
Trader that was again foreshadowing look at three times it tried to go to new highs and each time it had a lousy close that's another hint you but then if you're a Trader look after it broke below that little low just yeah now go a
Speaker A
little tier left yeah after those three failures and then it broke below there if you're a Trader you got to be gone and then when it starts breaking the 50 day this is a big top and I think it's
Speaker A
going to hurt a lot of people and of course it also makes sense because they've got the good drug and whatever and everybody loves it and I think that it's going to be a big problem so the news is good but the technicals are
Speaker A
saying a different story and we got listen to the price and that's another thing you know what nobody wanted it let's put up a weekly chart go let's go way back you know yeah look look at it this is a beautiful thing look at how
Speaker A
way back then in 2017 it was coming out of that base and nobody cared about it and look at how the whole time up look at how the whole time it's respected there the long-term moving average it's you know so even though
Speaker A
it's still above the long-term it's topping out and I think that this has a lot of potential on the downside Perfect all right we've got srpt here same story first you see it broke the 50 on a gap the next rally failed right at
Speaker A
the 50 and you should be out of it and then it's had a couple of failing rallies since then and now it's making a new reaction low if you're in this I would say thank you Lord sell it on the
Speaker A
next rally all right TMO thermofisher scientific same thing look at the distributional top look at the downside Gap volume came in I think it's another big problem is didn't happen it didn't come from nowhere Uber oh this is good because this is a
Speaker A
stage 3B that hasn't happened yet I haven't really shorted it yet but I've got anybody who's listened to me on the long side is out of it and let's show them again this is great teaching Aid um just like we did that good teaching
Speaker A
course you know last year take a look and see back in October when it had upside Gap it still looked terrific Now watch how it slowly starts to deteriorate first it comes in and you think it's still okay and I was actually
Speaker A
wrong because I thought it was going to hold the 7778 area but after it tried to do the textbook thing then showed them how it had that big downside Gap boom on big volume look how the next rally failed right by the 50-day ma
Speaker A
closing below 69 a half well you can't be in it it's a 3B but I think it becomes a short so never a guarantee but again I know good probabilities and it's interesting because let this shows how tricky and trying this Market is below
Speaker A
69 half at stage four R I think it's a short let's put up and show them lift which usually it'd expect these two stocks to move move in synchronized fashion but look at lft yep isn't that interesting lft is
Speaker A
the exact opposite it's extended I think coming back in toward 15 14 at 15 I think lift is a buy well I think that Uber is a sale so again if you're just a strict fundamentalist they don't stand a
Speaker A
chance in this market but if you know your stuff again not going to always be right but I think you're going to be right a whole lot more than most people on the street all right we've got the
Speaker A
last tennis ball here so let's make a count here WSM okay here we go another look at how it's made this big let's see a little more yeah you got it big distributional top big stage three top this is g to be
Speaker A
a problem again the bigger the top the bigger the drop so you can't be in this stock if you are sell it either on a failing rally up to 200 day or closing below that recent low right there from
Speaker A
the other day yeah up and down it's a sale and again the odds are so clear and meanwhile so many people today look at the volume they're buying the stock I just find it amazing and look at this
Speaker A
bar right here I mean that that's the warning sign right there just like that other one you pointed out that is a Telltale would you get that kind of a tail that's a Telltale watering perfect all right so we've just got some closing
Speaker A
questions here this has been great I hope you guys really enjoyed the chart session it's something that you can go back and watch many many times uh but Stan is there anything from your book which I know was written over 35 years
Speaker A
ago that you feel is no longer applicable or has significantly changed as the markets have adapted and changed as well yeah I think really we cover that to a degree which you got to be faster even if you're an investor you
Speaker A
can't wait to break the 200 Ama you got to first take some incremental off like we did in the crypto stocks then you have to below 50 if you listen to me you got to be gone and find something else
Speaker A
that doesn't have any you know black cloud and in addition to that like I said back in the 80s we didn't have the stochastic and back these whatever so Traders have that but you have to know put that in as part of the package I've
Speaker A
seen some people hurt themselves because I always think that the good oldfashioned chart is numar Runo that's where it all starts and then you play around and fine tuna but I've watched some people are strictly do just stochastic and they become old before
Speaker A
their time yeah I I think a common thing with new Traders nowadays is they learn the macd they learn the RSI they they memorize that instead of looking at Price action which actually is is the truth that just is
Speaker A
an you're so right the price action it and that's a lot of times people are saying me Stan do you think that all the things that you wrote about in the book are still valid and absolutely because to me supply and demand is always going
Speaker A
to be supply and demand and emotions fear and greed is going to always be there so it's still the same game but it's a hell of a lot faster yeah and you've seen so many Bull and Bear Market
Speaker A
Cycles stage one through stage four over and over again is this bull market typical or in some ways is it different what what are your thoughts on that no like I said the way it's different is that you have a diversity of good and
Speaker A
bad stocks that I've never seen in the middle of a bull market like that so I think that's different and that is why I write repeatedly be in gear with us perfect and you know this year has been
Speaker A
exceptionally strong there's been so many opportunities as as we've highlighted are there any stocks or names or even just kind of them themes that come to mind that Traders should go back and study look at the charts look
Speaker A
at the price action uh to really just you know sharpen their edges and and you know be ready for the next year in the next bull market I think Rich that's really we've done this tonight even longer than I planned on I think that we
Speaker A
did a junior teaching course tonight and if somebody really does their homework and they don't try to overthink things but they look at the good ver the bad I think you know it's kind of obvious yep and if somebody wants any
Speaker A
even more stocks that Stan's analyzed and gone through uh as part of your master class we went through and made model books of stage one stage two stage three stage four breakouts broke it all down really simply and giving you so
Speaker A
many examples that you can go back and study so link to the master class which is excellent we've had hundreds and hundreds of Traders go through that uh is down below in this script description I was I was really proud of
Speaker A
that trade of course I think it's great and it's kind of like an encyclopedia you can go back and you could look at it and anybody who now is interested you know you'll tell them how they can come
Speaker A
in through you and sign up and let's win together yep one last question before I mention GTA Global Trend alert uh do you have any advice for Traders who want to finish off 2024 really strong and you know kickass in 2025 as well any kind of
Speaker A
words of wisdom uh from yourself I would say because I see people already starting to predict what 2025 is going to be and I don't have a damn clue I would say just don't look around too many corners the way it looks now I
Speaker A
think we're good unless we start to suddenly get downside gaps and things we don't expect we're good through the end of the year probably into January but don't look beyond that the other thing I would say if you look the Market's
Speaker A
always giving hints even though today shortterm the Russell was very weak it was actually the weakest of the indexes but overall when I go through the charts I think from now to the end of the year you're going to see a lot of secondary
Speaker A
stocks that were recommending a lot of smaller stuff come to the four and even though there's a couple of you know of The Magnificent 7 we still like net there are so many others like I think apple is making a stage three top so I
Speaker A
think you're going to see a lot of money start to flow out of big winners of 2024 and I think it's gonna F it's already starting I think gonna find its way into a lot of stocks that you may
Speaker A
never have heard of perfect well we'll see if this bull market goes to Extra Innings or you know there's maybe there's a rain delay or something we'll see what happens we'll see if right we'll see if this extra ends but don't
Speaker A
don't try to think about that just deal with what has to be done here and now because if you think too far down the road I think that you're gonna foul yourself up yeah deal with the pitches that are coming to you at the plate
Speaker A
right now we we can we can talk baseball analogies all all day long right for sure even the baseball I love football even more so you know just try to make first downs as you go down the field
Speaker A
there you go well Stan it's always a real real pleasure talking with you uh it helps sharpen my Ed I'm going to rewatch this many many times take notes uh so so thank you so much for your time
Speaker A
uh thank you to all who are listening I hope you guys enjoyed it as well again go back and rewatch The charting section section I think is extremely valuable and definitely if you're interested in getting more in-depth analysis
Speaker A
recommendations learning directly from Stan uh you can check out both the master class master class as well as of course Global Trend alert uh which you can access this is an exclusive offer uh he's never before done this which is
Speaker A
awesome uh through tra line.com and the link to that is down below in the description so thanks to all uh Stan any last words for everybody yeah the tape tells all there you go that sums up the entire video so thank you guys all leave
Speaker A
a like down below if you enjoyed subscribe if you're new to the channel and we'll see you guys in future videos take care [Music]
Topics:Stan Weinsteinstage analysisstage 24B minusmarket correctioncrypto stocksbreadthkey reversal dayTraderLionGlobal Trend Alert
