All Indexes Up To Cap First Trading Week; Alphabet, Toll, Wayfair In Focus

28:47It's, you know, and it's not just the silver. You've got copper. You've got steel. You've got aluminum. You've got, you know, you name it. Coal. You know, coal was going pretty crazy today. We were talking with Scott St. Clair about, what was the, was it ACMR? That was one of them. No, no, no, no, no, no, no, not ACMR. It begins with an A. The BTU or? BTU is one, but it's AMR. AMR, I think is the, yeah, oh, it's AMR, alpha metallurgical resources that we were talking about. So yeah, a lot, this is metallurgical coal, but BTU, you know, Peabody, yeah. And these are all in XME, you know, so again, you don't normally think of, you know, metals and miners having coal, but I mean, it's a mining thing.

29:36So XME, one of the top spots here with a two and a half percent gain today. SMH, again, even despite NVIDIA not participating, this had a really strong day, up 2.7%. And then the winner for the day was the home construction. Again, I do have a, well, not quite ITB. I do have a leveraged ETF, but basically the same kind of exposure here. I do have some SMH as well. So that wraps up the sector. Just going back to that, when you're looking at the XME, which I do have a position in, but you had mentioned silver briefly. So let's go there, which is something I have a position in and I've been trading it for a while.

30:18And a lot of people have said that this is a climax top, which I don't believe it is yet. And a lot of climax action, but when you have a climax top shortly after that, you will end up going back down through your 21 days. So sometimes with a climax, you don't really know until after the fact because it'll trigger a lot of the signals on the way up multiple times. And so with that, what's good to do is just look at a weekly chart because one that's in log and you can kind of step back from it. Let's look at the weekly for a second.

30:55And when you get commodities that go into moves like this, I've just noticed they go a lot longer than folks would think. I just think it's kind of some market mechanics in there with margins on the futures exchange and stuff that can mess, could add a lot of volatility, but it can also squeeze things up. But to me, this looks like it's got a lot further to go. And I think it looks a lot stronger than GLD and the gold play. So that could just broaden out to all those other XME things as well is just when you get this theme and this looks like the clear leader of it. Now, go back to the daily. And if this one were to close underneath the 21 day, how far are we from the 21 day?

31:46We're like a mile away, but it can get there in a blink of an eye. 11.9 percent. 11.9 percent. So that's kind of how I'm looking at it, saying that this isn't really a climax until we get that. Now, it's, and there's some other things on there, but it's just something to keep in mind and kind of try to let things just go when they're in this kind of parabolic phase because you can sometimes get a lot more out of it than you would think. At CLA, we're in your corner and on it. We coach tax strategies and Little League First Base. We help you adopt AI data tools and we adopt rescues named Buddy.

32:25We walked your factory floor and jogged the local 5K, though sometimes we walk that too. Wherever you're coming from, we're right there with you. Wherever you're going, we'll get you there. CLA, CPAs, consultants, and advisors. Learn more at claconnect.com slash with you. Okay, so now let's take a look at some individual stocks. And we can start with Alphabet. Again, one of the few stocks of the mega caps that is still looking strong, looking potentially set up to break out of a base here. I do have a position in this one. And give us your thoughts, Mike. Yeah, I have a position as well. What I like about it is it's the best looking mega cap stock out there.

33:10And anyone can see that. You know, it's an AI play, plus it's other things. It's their normal. It's the Waymo. it's the it's ai it's their search it's through youtube um you know so it's it's spread out and it's big and liquid and no one can get in trouble owning google you know a big fund manager is not going to get in trouble you know even having a an oversized weight in it so it has that going for it and on top of that it's got a little base here now i don't think it's the best looking base ever. Let's go to the weekly. Just got to be, you know, call it the way I see it. There's good things about it and bad things.

33:54And the good thing is it's only 10 % deep after this long run. It's in the spirit of an ascending base where this is the third pullback. It's not what I don't think Bill O 'Neill, founder of IBD, would call it an ascending base, nor would I really draw it as an ascending base, but it's in that spirit of three pullbacks and really had support at its 10-week line along the way in a really nice way. You've got the RS line that likes to hold above its moving averages, and you've got the blue dot on there saying that the RS line is at a new high as it's in its base or starting to break out. So it has all that going for it.

34:38Let's go down on the quarterly numbers.

34:43Something this big growing in the teens is fine because those are big numbers that it's putting up. But the earnings going down to 10 percent, I'm going to call it the way you see it, like that's not good. Plus, there's this deceleration that's going on. So there is a disconnect. It's great for a big company. But when you talk about what is that going to do to the price of the stock, you know, it's hard to get excited about. Exactly. Because the stock will, the price will follow what the earnings are doing given enough time. And that's not a good sign when the earnings are slowing and the stock is moving up like this because then it means it's closer to the end.

35:27So you want to be cognizant of that in the reality because you never want to fall in love with something. Um, but so that's, what's negative about it, but let's go to the monthly to see what we can see there. And there's some mixed things on here. One that we, we all kind of think of Google as his monster stock, but it was a monster stock when it went public, like go ahead and do the best fit twice in one show. I know. Amazing. So when it went public out of its IPO and had its initial move there, that's the Google that we all think of is that that powerful move. But then after that, it was really what Chris Gessel, our good buddy, would call like a market stock.

36:09Because look at that RS line. Yeah, it's a little gradual uptrend, but you don't see that white space between the green line and the gold line, the moving average of it, except for a little bit in 2021. But now it's starting again. So that's why I say it's mixed in that it was dead money for a long time, which is actually good because then it means it can move up from there. But it also has the last six, seven months or so, maybe a little bit longer than that, where the RS line has been trending above its long-term moving average. So this can go a lot higher than we think, but the earnings would have to get there.

36:49Now, all the thought is that this whole AI, the money coming from the AI is like down the road. So that's what the market is looking at. Let's go back to the weekly just to look at those estimates because it's not in the estimates yet. And that's falling off a cliff from 36 % growth down to 6%. So the jury is out on the fundamental side. Technicals look good. Let's go to the daily and we'll wrap this one up. Sorry if I went a little long. So with this one, it's just meandering up to the old highs, which is weak. It's good that it's up there. You'd rather it up there than not up there. But just meandering, it just feels like, man, unless there's some news, a nice little shakeout would be ideal right here.

37:39Because getting up to where there's no overhead, you would have thought it would have had a little bit more oomph going. But we'll see. Again, I would use the 21-day as an exit for this one. And I just have to say, Ken and Dave, who run Leaderboard, they've had this on for since the very beginning of that move. Just so impressed with them. And they do a really good job holding things. So great job to them. Yeah, I can't remember if it was back here or if it was in August, you know, maybe here. But yeah, they've definitely, this has been one of the better, actually the best Leaderboard stock for 2025 and for the fourth quarter.

38:23Um, so yeah, just, uh, great job. When you nail one, that's, that's sometimes, uh, can really give you a, give you a good boost. Yeah. And that's the benefit of position trading versus swing trading. Like the position trading, the concept is letting it run unless it, you know, once you get a little bit of a cushion, then you just let it really kind of hold its 10 week line or it's 50 day if you're position trading. And when you get a runner like this, it can make all the difference in the world. Mm hmm. Speaking of a runner, Toll Brothers, a big move in the home builders today. Again, very, very news related.

39:03A lot of talk about buying mortgage bonds, government for the for the government buying mortgage bonds to help try and bring the rates down, mortgage rates down. That could be a big thing for home builders. We also saw RKT, which is rocket companies having a nice day. I do have a position in this one. We do have it on SwingTrader. And we actually had it on previously to this. So a nice move there. Is it on SwingTrader or Leaderboard? No, no, no, that's on Leader. I think it's on Leaderboard. Okay. I do have a position in it. I thought it was a little too risky for SwingTrader, frankly. Yeah. And yeah, it did have that benefit of the news that came out last night.

39:47And again, that was, as we mentioned, helping ITB and Toll Brothers in particular, which was an area where as this was getting back above the 200-day moving average line, we were really kind of pushing hard on this area, very heavy weight. It didn't pan out, just ended up basing again. So what's what's different this time, if anything? Well, you get the news that if that if that holds and we don't get something like we had with the defense news where one day it's positive news, then the next day it's negative. You know, assuming that doesn't happen because you don't know. There is so much movement in this space today.

40:28If folks get a chance to screen over the weekend for things that had big weekly moves closing near their highs, you'll see so many things. Anything related to building really had massive moves. And so the market is looking at it like it's real news that's going to stick. Because, I mean, just think about it. There's some basic things with home builders. It's, you know, interest rates. And then it's, what's that other thing? Oh, interest rates. and something else. I think it might be interest rates. So if they can actually do this, because the cuts in the discount rate, what the Fed does, doesn't impact the mortgage rates that much directly.

41:16And there's so many, I mean, that's a big can of worms for like, that's a two hour topic, but something directly going at mortgages, that's what this area needs. They also need deregulation and that would take a long time. But this looks like the beginning of something. When I go kind of plowing heavy into a space like this, I just expect I'll probably get shaken out at first and be willing to buy it back. So mentally, you want to size your position to if getting shaken out really bothers you. I mean, it bothers me too, but it just comes with the territory that I'd rather be heavy in on a move like this to get a piece of the big move that I think is there.

42:05Let's go to the weekly. The potential is really there because when this group moves, like this is a big, beautiful cup with handle. I can just picture in my mind if I was building a model book for Bill and this was, you know, trading at$300, it would be like, oh, well, this is obvious. This big, giant cup with handle, like, what more do you want? Now, if this one breaks out and fails, we know what Bill would say. Well, it was too obvious. Like, everyone could see it, you know. Or it was too deep. I mean, this is a 49 % depth on the cup. That's a lot deeper than we typically like to see. But it was also a reset in that, you know.

42:43Yes, absolutely. So, it really got everyone out of there. They either wear you out or shake you out. This was a little bit of both. So the deep bases bother me when they're short because you have the psychological aspect of, let's say something's trading at$160 and then it falls down to$80 and then right back up to$160. People haven't had a chance to really process that as much. Whereas this happened over a longer period of time. People finally, like you said, got worn out and said, forget it, like I'm done with this. Or like what happened with me? I mean, I got all hot and heavy on it like three times and then just had to turn, you know, kite in a run.

43:27It was very reluctant to do so because I really see a huge potential in this space. And I don't think trading any individual name, I think toll looks the best, but just about any of them look like they want to go higher, but some of them are in kind of weak positions. Like let's look at Lenar for a second. And that one was up a bunch too, but that's in a totally weak position. Like that's a broken chart versus a toll that looks so much better. And then you have all of them. And I always like to go to NVR because it's such a high price, thin stock, thin as far as shares is kind of like, this is really what the group is doing.

44:10And so this is much weaker and you compare it against this because look at where that handle is. And now let's go back to toll and see the handle and toll, the position of it is so much higher, right? This one looks like it's under accumulation, whereas the other one, the other two didn't. And then you could go just, We don't have to go there, but you can do the Pulteys and the DHIs and all those. And it's really the thinner, smaller ones that look better as well as toll that looks good. And so I think the best way to do it is just like ITB or XHB or both. I'm using both ITB and XHB for this. And we'll see.

44:57But I'm planning on getting shaken out. But I always do. So that's how we plan on it. You don't want it to happen, but you plan for it. So rounding out the discussion here on stocks, let's take a look at Wayfair. Again, a lot of movement in the retail space, whether it's some of your discounters like Ross Stores and TJX that are, you know, TJX had a good day yesterday. day. Or, you know, some of your American Eagle Outfitters, A &F, you know, some of those. Let's see, Ralph Lauren in terms of the apparel clothing. Ulta, there's just a whole bunch of them that have been looking a lot better lately.

45:44So one of the other areas is the, you know, the home furnishings, which my wife has been doing a little bit of buying for our remodel. And Wayfair is certainly involved in that. She's been going to RH? Dude, you're going to go broke. No, no, no. Don't go into that store, man. Most of our stuff, I'll be honest with you, is off of Amazon. That's what we get our stuff from Amazon and Costco. And Costco furniture is a great deal. Like RH is a great place to go into. But man, the sticker shock is like, wow, no, I don't I don't want to spend that for something like driftwood that came up. We were looking all over for like a sofa bed that had a, you know, a pullout and went to all these stores, ended up, you know, finding something at Costco.

46:40We went to Costco for a different reason. It's like, why do we go to all these different stores? Costco had it like right in front of us, like, you know, lights shining on it. Angels from the heavens, you know, singing. And yeah, so back to Wayfair. Wayfair, OK. So folks get a sense of what we talk about when we're not on air. So Wayfair, I do have a little position in it. I don't like it that much, frankly, but it was a struggle to find things to talk about. Like one of the things we were going to talk about was like Sandisk, which I have a position in. Let's just take a look at that. But it's sticking straight up in the air.

47:13What can you do with that? Like, even if it pulled in, no matter what it does on Monday, you really can't buy it. And there are a million stocks like this that look, you know, pulled in enough to be buyable. It would look ugly. It would look ugly. You just need time on these. So there's it's not like we don't see all of these. It's just like, oh, you know, let's try to talk about something that's a little more in position. So there was Amazon was one. And I think I have some of that as well. But yeah, I do do on that. And it's it's nice and liquid and rounding out the right side. And it's more diversified because it's got its AWS.

47:50Plus, it's, you know, it's prime service type of things. And obviously the retail side of things. Now, let's go back to the Wayfair that this one, let's go to the weakly on because it is, it's not technically a base on base because the move from the last base up to this base was too much in a percentage terms. terms, but it is in that spirit of a base on base because the move from 20 up to 80 was in this straight line, really in the spirit of a high tide flag and then broke out and just couldn't go anywhere. And it's really, this is an ugly base. You can almost call it like a double bottom like base in there because you have the second bottom undercut the first one.

48:36But the, what I They call line four, which would be, you know, you go line one, line two up to the midpoint. Then line three is your first leg down or from 114.67 down to 91. That would be line three. And so line four, so from 9106 up to your pivot point, which would be 114.67, that normally happens very quickly. So line four can happen quickly and normally doesn't meander up here. So that is a fault when looking at it as a as a double bottom. So that's why I'm not super crazy about it. But it's more of if all the home builders are going to move and people are going to start switching houses for the first time in a while, they're going to be doing a lot of buying.

49:29and that's where Wayfair is going to come into play. And it's a little bit more heat than something like an Amazon. If you're buying it, I would use the 21-day as an exit. And again, I'd say this is more of a C-caliber stock. You're on mute, or I just can't hear you. Maybe my hearing went. You know, to your point on, you know, folks might be buying things, you know, or refurbishing and stuff like that. But as they move, Home Depot had a very strong day, up 4 % and Lowe's also up significantly, up over 4%. So again, the whole area related to, you know, people going from one home to another, the whole area was doing very well today.

50:16So again, the ETF is one way to play that. But, you know, XHB and, you know, has a lot of the Home Depot lows and, you know, even, you know, some of the plumbing fixtures and, you know, Mohawk and everything else that you would get with a home remodel. And another way to play it, too, is the XLY, which I have a position in as well. You know, it's obviously heavy with Amazon and Tesla, which I own both of those. But it also has this space in the Home Depots and the Lowe's of the world and the restaurants and, you know, the home builders. And so this is another kind of a slower, pokier way of playing this space.

50:57But if you get any really bad action in either Tesla or Amazon, it's going to be a drag on there. So you have to be aware of that. And, you know, certainly if you sort XLY by some of the top areas, Lennar, Pulte Home, DHI, Best Buy, Lowe's, you know, all in there and XLY and, you know, Williams-Sonoma, you know, so NVR, all some of the top movers in that space this week. Or actually, I should say today. Mike, are you ready to take over? I know we're a little bit behind, but yeah, let's turn things over to you. I'll try to power through these. Yeah. Let's see. Wherever possible.

51:48Okay. Can you see my Spy Weekly? I can. Okay. And so I know you've done the research to find out who Bob Weir is. This is the Bob Weir Take a Step Back part of the show. I'll send you a link later. Anyways, what we do is we like to look at the candles on here to see, is there anything that we're noticing on the weekly that we're not noticing on the daily or interdays? And we also look at monthlies. Maybe we'll start doing that in a bit in the future on this. But this looks really good, and that's all you're doing is just we're going to go through a series of charts if this is your first time with us on a Friday SMT.

52:29and we're not putting too much weight into any one of these charts. We're just trying to let it tell us a story and put the mosaic together and look for warning signs as well as reasons to be aggressive. This would be on the side of a reason to be aggressive because it's a beautiful candle. If you don't know how candles work, I just recorded a Webby Rambles on that will drop tomorrow on how I use candlesticks. So that's on my YouTube, which is Webby 5150. So that'll drop tomorrow morning. So if you want to know more about candles, tune in. If you have trouble sleeping, tune in. So here's the Nasdaq Composite.

53:10And this, on the weekly basis, actually looks good. A little cup with handle looking weakly. And a positive body with a little bit longer bottom wick than top wick. Now, relative to the other ones, it looks weaker. but on its own, it looks good. Let's look at IWM, which as I mentioned, I have a position in. This looks so much stronger than the NASDAQ, like tremendously stronger. Look at the body on that, this massive body. And you can get this sense that it just wants to go higher whenever you have these blue bodies on here. They tend to be really big, meaning you opened up here and you closed there.

53:50Very, very positive sign. Now we'll go over to the regression lines. This was our old regression line that we threw out back on October. So we've got some new regression lines. How many days did you say 33 days now? I think it was 33. Okay, so I'm starting this. We like to have 50 days, but once we get to 30, 35 days or so, we start putting them on to look at them. So I'm starting this regression on November 21st on this bottom day or actually, yeah, because that was the bottom trading day. And we've got our one standard deviations away. Those are the thick lines. So the concept here is, is it creating a channel that's predictable, which it looks like it's doing right now, but it's a short period of time?

54:46And then where does this trade in here? So we're going to be talking about this more each week. Right now, there's not a whole lot to take away from this other than it's looking normal, natural, and strong. And why do I say that? One, your line of best fit, which is your white line here, that's your regression line, that is your home base. And anytime it's trading there or above, it's in a healthy place. When it's below it, it's also healthy depending on how it's doing because it has to go both above and below in this channel. But when it comes down, you don't want it to stay down long. Just like these two days came down, went down to your one standard deviation, and then bounced right back up.

55:29that's a very healthy type of action. So we'll see how this plays out over the coming weeks. Same thing here on the NASIC, acting healthy, but not as good as SPY. And then IWM is a little bit more all over the place. So it's hard to really, you know, if you do a regression line through anything, you're going to get these lines. But it's really hard to say this isn't a true channel or a defined trend by these because it was trading above it and below it. So time will tell there. Let's move on. And fairly quickly too. Yes, yeah, absolutely. So next we're gonna do our 50 % retracements. These are using the same ones that I had before, which was the high from October and the low from November.

56:19And now what we like to see is we want it to be trading in the Northern Hemisphere, which was above the gold line. and it had been doing that and staying above it. So it had that going for it. Now it's up into new highs. So at this point, we want it to stay up into new highs and then in the future, we'll have other lines to draw. But right now, that's what we're going with. And again, we're seeing this theme with the NASDAQ is yes, it's still healthy that it's in the Northern Hemisphere, but it's so much underneath the old highs relative to SPY. And then let's take a look at IWM. And this one, your highs in October, it's trading well above that.

57:02And it's even trading higher than this other one that we did last week. We're December 12th high. And then the low from January 2nd there. So it bounced right back. Let's look at our next chart. Here are our levels. So we're through the high of the chart, which is something you always like to see. So our most recent low, which is right by its 50-day, this is the low from January 2nd. So that becomes our first line in the sand, 679.82. It's not a go-to-cash level. It's just that would not look right for us to come as we're breaking out to new highs and to come right back in there right away. That would feel like a breakout failure.

57:47But it wouldn't be catastrophic. but if you got down under this one, the 671.20, which is a low from December 17th, that would be much more concerning there because then you would be kind of well into that base. And at that point, you could make a trip down to 650.87, which is a low from November 21st. So once you get lower than that, then you're looking to a test of your 200 days. So we don't want to go down there, but the market's going to do what it's going to do. Again, the NASDAQ is on the weaker side of things. You can see it's just trying to get above this high from December 10th-ish. And then the low on January 2nd is also important there in similar levels.

58:33I think I also did IWM. So IWM looks so much stronger through our highs, our December 12th highs today. Nice close. The candle could have been a little bit better. But our important date, again, is the January 2nd low there, which coincides with your 50-day. Now we'll move over to this is something relatively new to the SMT. This is my Fibonacci moving averages. I've been using this for a decade or so and just recently started sharing it. And I just use a bunch of different moving averages on here. So the shortest one is a three-day, and I just use just Google Fibonacci sequence for the times that I use.

59:21So a three-day, a five-day, an eight-day, a 13-day, a 21-day is a blue one, a 34-day is the tan one, then a 55-day, 89-day, and so on. So it really spaces them out nicely. And the point with this is to see, is the market really trending or not? And this is, it'll just tell you, are they all in the right direction, meaning the right order, the three above the five, the five above the eight, eight above the 13, and so on. And that's exactly what we have there. So very healthy and looks like the beginning of something. Now let's look at the composite. And they are stacked, but they're really close together.

1:00:04So it's certainly not as good. But IWM, again, is looking the strongest there with a lot of distance between each one. That's what you'd like to see and have it really expand out. and we'll go to the RSP, the equal weight, and looks really nice there too, which with a lot less volatility that you have in like the IWM. So now let's just do, this is Allie's favorite and we did get word that Allie is going to be back. I think it was February 17th is going to be her first day back if all goes as planned. So we're - That's the rumor. Super excited to have her back. She'll be rid of me on these Friday SMTs.

1:00:47Well, except when she's away. But, you know, and she shared a picture of her baby, which we'll let her share if she wants to when she gets back. And we just miss her dearly and, you know, hope all is going well and looking forward to having her back. And then I don't have to talk to you on Fridays. Anyways, this is her favorite thing. It's very simple. Just the 21 day moving average, 21 day exponential. And what I like to do is just focus on the low versus the 21-day, or if you're underneath it, the high versus the 21-day. Or if you're trading through it, the fact that you're just in chop zone.

1:01:26So now we've got one day, two, three, four, five days with your low above your 21-day. And that looks like the beginning of something, not the end of something. Let's take a look at the NASDAQ. Now, again, this one, that's why I use your low versus your 21 day. It's just struggling because today is just day one that it was above there. And let's look at the IWM. Here you've got multiple days, again, with your low above it and the same thing for the RSP. So I'm going to stop sharing those and we will share our WRSI. Let's see. Where is that? Okay. Okay. So this is our Webby RSI, and that is the little histogram down at the bottom.

1:02:16And now we finally have something to talk about. We haven't had it for a little while. This is measured in ATRs. So your distance of your low versus your 21-day expressed in ATRs. And you're starting to get a wall of blue that we've had for five days, but you really want this to get much bigger, kind of like what it was over here to get up above two or even higher at the beginning of something. And you can see with the burnt orange, that's when the high is underneath your 21 days. So you don't want to be in a, you don't want to see orange on there. So this is starting to look better, but it needs to get a little bit more power.

1:02:55Let's take a look at the XIC. I always forget the symbol there. Okay, so here's the NASDAQ, and you can see it's spotty down there, which is problematic where you didn't have one, and then we had a little one today. But let's look at IWM. This is more what you want to see, some power there. This is getting up to, you know, over 1.5 ATRs, and hopefully in the very near future, that expands even more. Let's take a look at the RSP. Oh, that's nice, too. 1.5 ATRs with your low versus your 21 days. So that's really powerful for this instrument. And so hopefully that expands even more, but we'll see what we get.

1:03:44Let's look at our off high. This is my daughter's favorite, the Bob Marley off high indicator. And it's very simple. It's just measuring in terms of ATRs, how much you've come off your highs, and we use the low in there. So right now we're just one ATR off of our highs, at least our low is. And so that's very constructive. The green area is four ATRs off the highs. Yellow is four to eight and red is below there. And you always look to see, can it hold the recent levels? So if we start rolling over, we want it to hold above this level that we had here on the first day of January. So around, look like 1.8 or so ATRs.

1:04:29Let's take a look at the NASDAQ. A little bit weaker at 2.04 ATRs off the high. Nothing surprising there. And IWM is just about 1 ATR off of its highs and looking good. Let's take a look at the RSP. And the same thing there. That's actually the strongest, only 0.75 off of its highs. So all is looking good there. Yeah. And a lot of those, you know, as you pointed out, I mean, they corrected, but they didn't get into very serious damaged territory, just kind of on the cusp of the yellow. And so looking very strong. And it's kind of crazy to think for as much sector rotation as there's been and how rough the fourth quarter was for a lot of us in 2025, the indexes really did hold up pretty well.

1:05:25So, yeah. Any final thoughts? Well, another happy birthday to your father. And what I would suggest folks do over this weekend is really do some broad-based screening. I would not put anything in as far as parameters of even versus the 50-day or the 200-day. I would just use whatever your minimum liquidity is. I use, if I'm doing stuff for Swing Trader, we'll do$75 million volume. If I'm doing stuff for my own trading, I'll go as low as$25 million volume. So I put that in as a parameter and above$10. and then look at anything that on a weekly basis had a closing range of 75 or higher. So 100 would be closing at the top, zero would be closing at the bottom.

1:06:15And then whatever the market did for the week, so let's say SPY was up, what was it up for the week? 1.6%. So I would put in there that it was up at least 2%, so more than the market, up 2 % with a high closing range on a weekly. Now, if you get the phone book, like you get too many stocks in there for you to be able to handle, then you can start putting other criteria in there until it gets to a number of stocks that's manageable for you. But I would really say, try to spread it out as much as possible. Look at as many stocks because you're going to see, you know, at the beginning of years, lots of changes going on.

1:06:58And if you use criteria like a high composite rating or high relative strength rating or the normal things that we would use, you're going to be missing out on those turns because a lot of things that are turning are turnarounds. So their earnings aren't going to be there yet. And so, therefore, that's going to be a drag on the SMR rating and the EPS rating, which goes into the composite rating. so it's really problematic to use ratings on a week like this so you just got to do a broad base and if you have to sort it by the price percent change on the week and then just at least look at the ones that had the biggest moves first now you're going to get a lot of junk in there you know biotechs and stuff that that's what the space bar is for that's what the space ATR, 21-day ATR of less than like 8 in there, 8%.

1:07:58So you don't get those crazy ones. Now, I don't do that because I want to see what the crazy stuff is doing, even if I'm not going to trade it. But this is the time to do your homework. I'm telling you, it'll pay off because you'll get a feel for the market. And you also get a feel, is it acting, the things that had big moves this week, is next week a give back week where let's say it was up 10 % this week, Now they're down 5 % next week. That's quite possible. That would be normal. But if it's up 10 % this week and then next week it's down 8 % or 9%, that's not the type of action that you want to see.

1:08:33That's abnormally weak. Giving up half of it next week is kind of par for the course. You don't want to see that. You don't hope for it, but you just got to know that that's reality. Yeah. And to answer Tim's question in the YouTube comments, yeah, in this case, you will be looking at things that are under the 10-week and 50-day moving average line just to, again, see if there's things that are coming up very strongly and are maybe on the verge. If you exclude those, then you could miss out on some of those turnaround situations, like what you said with the earnings. Let's just go, I know we're way over, but can you pull up Market Surge?

1:09:12Because why not? Like, why not? You don't have other things to do. You don't have charts to do. I'm getting you out of work. Well, I actually have a column that I have to edit. Oh, you have to? Oh, okay. I'll be stupid. Oh, no, no. It's, you know, that's, I've been multitasking. I started editing while you were talking. Oh, okay. So you're not listening to me. So I feel right at home. But pull a BE. So this is something that I normally don't trade things in this position, but these are the types of things that can happen. Now, people shouldn't be trading something like this as wild and crazy, but I was buying it underneath the 50-day using a shakeout plus three type of move as you're moving back above the 76 level plus five to 10%.

1:10:02And if you want like that technique, I do have a Webby Rambles on that on the shakeout plus three and how I interpret that. And so that was underneath the 50-day, something that normally I wouldn't start buying underneath the 50-day. But when they pay off, they can really pay off. Now, I tried that with a couple other stocks and it didn't pay off. So they're not all going to work. And there's a reason why we like to buy them above the 50-day. But if you're using a ShakeOut plus three, that's really about the only time that you can find something that's still textbook, textbook, relatively textbook, to buy something, you know, underneath the 50-day or sometimes the 200.

1:10:49I prefer not to be under the 200, but at least underneath the 50-day. So, and I just wanted to make sure people are clear. When I say to look at everything and everything that's up there, it doesn't mean that you're going to buy all of those things, but it gives you a sense of where the money is flowing. So let's say you look at this one and you go, well, this is out of position. I can't buy it here. then you look through the group to see if is there something else in position that or you just go well the best stuff is extended i'm going to put that in a special watch list and see if it'll set up for me so that's why you do this broad-based screening otherwise you know if i just stuck with above the 50 day i never would have saw this so it's um you know it's just and again this might not have made the screen that you just told us about because it's atr is above eight it's a nine You know, so, yeah, that's, you know, you might miss some of these.

1:11:43But again, when you go broader, you catch more. You know, you have to look at more, but you see more. So if you have the time to do it, it's great for getting that sense of what's happening. But, you know, if you need to exclude some because of time constraints, yeah, it's okay to set some parameters in that regard. Okay. Well, with that, Mike, thank you so much for all your wisdom and what you shared for us today. And that'll wrap it up for us this week. Next week, we'll be back for another episode. We'll also be back on the IBD Live on Monday. We'll start 10 minutes before the market open. I'll be hosting on that day.

1:12:24We'll go through our industry group spreadsheet and we'll do some looks at the market as it's happening live. We'll, again, start 10 minutes before the open at 6.20 a.m. Pacific time, 9.20 Eastern. And then, again, right back here on the Stock Market Today video on the Friday weekly wrap-up. We're going to have a holiday weekend next weekend. So it's going to be one of those times where we're looking ahead for a holiday weekend and the action that happens then. So thanks a lot for watching, and we'll see you next time, folks. Bye-bye now.

1:13:00Thank you.

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