Is Tech Coming Back Strong To End The Year? RTX, Palantir, Pan American Silver In Focus

30:10Not noise, proof of how we can help companies get smarter by putting AI where it actually pays off, deep in the work that moves the business. Let's create smarter business, IBM. So, Mike, let's go ahead and take a look at some stocks. And why don't we start with RTX, since we talked about some of the aerospace defense area. A nice little move here. I do have a position in it. Yeah, so this is the former Raytheon. You know, it just changed its name. But what do you think here? You know, I think it's set up. It looks good and you have a nice exit because the exit, if you were going to do this from a position trading standpoint, you could use the low from two days ago.

30:54And if you're doing it from a swing trading standpoint, you can use that too. But you could also start exiting at today's low. So when I look at a stock or an ETF, my first thought is, and how much do I think I can get out of this? My first thought is, where do I know that I'm wrong? Because you're going to be wrong a lot in trading. And if you're not comfortable with that, don't trade. Just dollar cost averaging to SPY and just hold it forever. I mean, there's nothing wrong with that. But that's not what we do because we can admit when we're wrong and you buy something and you have to know where that stop is.

31:31Now, if this was 200 and your stop was still at the same place, you'd have to you'd probably pass it up because there would be too much risk in there. Let's go to the weekly on this one. And this is more of a group move that there's so many stocks in the defense. And you can almost throw a dart at it. And that's why we went with the ITA for which I have a position that we put on Swing Trader because it was just. I should mention that for this GE, GE Aerospace has a 21 percent weight here on this one. And RTX is at 16 percent. So that combination is the bulk of what you're getting in in that ETF.

32:15Yeah. And I think the GE looks good. I think the guys, Hatman and Ken, I think they put that on a leaderboard today, if I'm not mistaken. So go back to the RTX weekly and let's look at the quarterly numbers. When you look at this, it's mediocre. You just got to be honest, you know, 12 % sales, 17 % earnings. But on the good side, the sales are starting to accelerate and the earnings are slightly accelerating. But it's not, this is a C caliber, B minus caliber stock. But what it has going for it is the group behind it, the RS line blue dots. So the RS line is at new highs as is breaking out of the base.

32:57You have a good exit with it. You have a relatively low ATR, which you don't even have to pull up the ATR. You can just see it by how it trades. And it trades in a predictable fashion. But the annual estimates are weak at single digit, high single digits, but it's nothing to write home about. So honestly, I'd probably go with the ITA instead of the RTX, even though I've done both in my personal account. But I'd lean heavier on the ITA just because you can get some – if you're going to take a lot of individual stock risk, you want to make sure that it has something compelling for it, not that it's just another one in the group.

33:40And like you were saying, what was the WWD? There's so many of the other ones in the group that just look buyable. and you can do a basket buy of all of them or you can just go with the ITA or similar. There are other defense-related ETFs that might work better for you if you just look at the holdings and see what the percents are on there. But this one, those annual estimates are stronger. Go down to the quarterly numbers and those are stronger. But let's go over to the daily chart. And so I was going back and forth on this one. You know, the risk on this is really the low from two days ago. And that's just further away.

34:29But this is also one in that area that I think, frankly, looks better than the RTX. It just has more risk. and also you know just to kind of point out the ATR on this one is 3.56 as opposed to RTX which was much lower I think that was two I'll pull it up again I I'm just looking at my list yeah 2.11 so 3.56 on Woodward versus 2.11 for RTX so you know sometimes when we're doing our portfolio construction, we will take that into consideration. What is our portfolio ATR? You know, when you have a lot of cash, that's going to help minimize that. When you have a lot of ETFs, that's going to help minimize it, unless it's something like XME, which has a three and a half percent ATR right now.

35:23And again, this is a 21-day ATR that we're using. So just, you know, interesting how that played out. Let's also take a look on the tech side. Palantir, This is one I was stunned as I was doing some post analysis. I like overall lost money on this stock. And I'm like, how did that happen? Well, a lot of this choppiness in here just took away the profits that I had from earlier. I had some small gains in here and they got taken away from some of these. Actually, it was in here. I think it was all in here that I turned a winning trade into a losing one, you know, or a losing stock for the year. But set up again.

36:12What do you think, Mike? Well, I have a position in it. I bought it yesterday. And then when it was starting to move this morning, because we had already tried it on Swing Trader and then we backed out of it and would have done that same trade again. It was just not working out. And then, so I bought it back yesterday with the low back above the 21 day and the 50, and it looked set up. That's what I call a set up day where you've got a tiny spread up near an area of resistance closing near the highs. I mean, it's just something I've been using for decades now. So your expectation is today. So then this morning when it was going up, I was getting ready to add to it, add to it heavy.

36:58And I'm like, oh, shoot, let's put it on swing trader. So then I had to sell it and we put it on Swing Trader. And then, you know, I built my position back up and added to it heavy. And then the guys put it on leaderboard like late in the day. So I had like one minute to the close to buy my position back. I had it as well. And I just I couldn't get it back in that final minute when we had a window of one minute. It was literally one minute that we're allowed. And anyways, with interactive brokers, it allowed me, I was like, oh, wow, there's probably something that will allow me to set up a specific time.

37:35And so I'm going to start using that. Oh, that's awesome. Yeah. That would really help. It just did it for me because you and I, like we miss so many things because we have to put it when we put it on swing trader, we got to sell it. But anyways, this is not a beautiful base, but it has been one of the leading stocks in the AI space. and it's in position where you know where you're wrong. Where do you know you're wrong? What don't you like about the base? The gap down on, are you joking? No, no, I think it's very instructive. Yeah. Oh, okay. So you say it like it's obvious and it might not be.

38:13Okay. So when you analyze a base and let's do it, let's do it on the weekly first because that's probably a little bit easier. And Bill O 'Neill, founder and all, he invented this thing called, as far as I know, he invented it, a week-by-week analysis of the base. And it's one of the most powerful things, and he doesn't get a lot of credit for it. And the two of us spent years trying to codify that, and we never finished it. He ended up retiring before we finished that project. But we would go week-by-week through it and analyze it to death. And by analyzing it to death, what did we do? We'd look at the combination of volume with the price.

38:52Yes, I don't use volume anymore, but I still use the price action. The spread, the distance from the high to low versus anything in the base, your widest ones in the base, your smallest ones, what do they look like versus your prior run? So the spreads in this, especially the first three weeks in there, so much wider than anything that we had seen recently. What does that tell you? That's a bad sign. That's telling you that people don't know what to pay for it. It's not equilibrium. Tight is equilibrium. This is in a nutshell. That's what it means. The next thing you look at is the closing range.

39:30Where did it close? If it closes at the high as 100, closes at the bottom at zero, in the middle it's 50. And we found that really 38 % to 40 % closing range on a down week was actually supporting action. The higher, the better. And do the track price on each one of those first three in there. And this is only for down weeks. And so that is a 23 % closing range. It's right there in the track price. Then a 31. And then a 27. 27. So the thought process there is the Friday close is the most important. And if you can at least get up to halfway, which would be 50 percent, then you at least want it to show that it has some strength that, you know, the four, let's just call it 40 percent.

40:20Sometimes we use 38, but 40 % or higher that it was supporting action as the stock was coming down. Because you've got to remember when something is being sold off, it might be like a bunch of swing traders or, you know, those goofballs who'd like to trade fast in there. I don't know who would want to do that. Just as a case in point here, let's look at this base prior. And here was a 46%. So in the lower part, but above that 40 % that you mentioned. So a very different look as opposed to kind of a waterfall here. And it stopped on that second week, had that 40 percent close and then inside a couple of days just as a contrast.

41:03Exactly. So those week that week and then the two prior weeks, very, very constructive action, because one, not just the closing range that you pointed out, but the fact that it was back above its 10 week on on on the close. And as you were saying that those next two weeks were tight, you wanted to, again, equilibrium. The spreads came back down. I was telling you people were comfortable there. And then it started moving up. But then, you know, the market and the whole AI thing was falling off. And that's why I think it came down. But each one of those weeks, thanks for blowing it up. Yeah. Someone said that it was a little hard to see.

41:44So I'm going to try and blow it up a little bit more and then I'll go back down. Yeah, it helps my eyes. So thanks. Oh, too much. It's okay. You can just move it over to the right. Yeah, there you go. So with this, each one of those were closing underneath the 10 week or the first one was right at the 10 week. That's very critical. That's another sign of weakness in there. So you had lots of distribution on the left side, which happens in bases. But then you needed the right side, something that is so compelling that it makes up for it. So that next week off the bottom, the closing range was high, but it was just an inside week.

42:24So equilibrium and all. But after that big hit, you would have wanted some power. So that was kind of a gray week, a touch of gray week. The following week, very nice action. Closed at the highs, was able to regain through its 10-week line. But the spread on there, because the spread will show you the power, the distance from the high to the low, it wasn't as wide as those other ones. So that was also a sign that it wasn't really being accumulated at the same pace that it was being distributed at. Then the next week, last week, that was actually a bad week. What was the closing range there? let's see even though it was up it was a bit of a stall um 46 okay so 46 and and just to be clear you you said this already but i want to just reiterate when we look for that okay can it you know can it close in the upper above 40 closing range that we consider support on a down week but when you have a positive week yeah it looks a little bit funny, right?

43:27That looks more like a downside reversal in a lot of cases. Exactly. Or stalling. In this case, I would think it's classic stalling type of action where it's just running out of gas. And so you only had one week of momentum the week before that, then it runs out of gas. So this is just not a good base. What you would want to do, and this is what I always used to do, is print off the chart and then take a red pen and a blue pen and mark each week with a blue pen that has something positive. Sometimes you'll have a blue and a red pen on the same week. And like with that week, last week, what was good is it closed above the 10-week line for two weeks in a row.

44:11That's constructive. It was relatively tight closing. That was constructive. But the closing range was bad. So that would be a red pen. And that whole stalling feel, the fact that it didn't get above the high from the second week of the base. So we could go on, I could do this for another hour just on this base. There's so many things to see. So when I see it, it just jumps out at me. And let's go back to the daily on this one. And folks should go and do this on every base. I mean, that's what I would do with Bill. You know, Sunday nights, we would go week by week through anything that we were going to put on the list that we managed together.

44:50So you also want to look at a daily and a monthly to see is there anything. Sometimes there'll be things that jump out on the daily that you didn't see on the weekly. There really isn't anything here. There was not, you know, the bottom day was just, it wasn't a big capitulation. You would have actually wanted a bit bigger spread on there showing that it took out a bunch of stops. So it's just not a good base. It just isn't. But I'm heavy in it. Why am I heavy? Because if the AI thing is going to go again. This is kind of the poster child for it. And then this one should, should, doesn't mean it will, participate.

45:31And we've got a good stop on here. You can do this from a position trading standpoint and use the 50-day and a swing trading using today's low and yesterday's low. And then maybe the 50-day is your final. So again, it's that you have a good exit and let's go to the monthly is this is a leading stock why is it a leading stock how i define a leading stock is when you look at a monthly is it is the relative strength line able to stay above its blue moving average is a longer term moving average and you're supposed to turn off your phone beforehand i am i didn't either and so i'm going to do it now as i throw you under the bus.

46:15So when you're able to stay above it for a long period of time, it tells you that it's leading and it is a leader. And that's been happening for a long time. I think it's all attributed to the haircut of the CEO. It's probably what's going on. Just joking, seeing if anyone's still awake. So again, this is Palantir. We'll see how it plays out. But it's not for the faint of heart because when this thing, if it had some bad news, I could see it easily being down 20 % in a day, like easy. You know, where like the Raytheon that we were looking at with an ATR of two, unless it was really significantly negative news, you're looking at maybe a gap down of like 8 % or something.

47:00So risk reward, they're just apples and oranges. is. Actually, I'm glad I'm glad I heard that call. It was actually kind of important. I just checked my email and I forgot that Chris was out today. So my story hasn't moved and gotten edited. Yeah. So they're kind of panicking like, hey, what's what's going on? Who's who's editing this thing? OK, let's go ahead and take a look at. Yeah. No, no, no. It's fine. It's out of my hands. I just had to say someone else take care of it. Pan American Silver. I do have a position here. This has been one of the strong moves. You've got this combination of both silver.

47:44Whoops. SLV is the silver ETF. Really on a tear. And then, of course, GLD that we've been mentioning. Which I have a position in. PAS. Yeah, I have a position in. Which I have a position in. Yeah, we've got to be able to do something differently. This is getting old. So, yeah, Pan American Silver. It actually does, even though silver is, you know, the headline, it has actually recently purchased Yamana Gold in 2023. It sold some assets. So it's still and I got some of this from Gemini. So using AI, it still has a very heavy, you know, amount of silver. number two in terms of the primary silver market, but it's actually getting more from gold right now.

48:33So what is your take on the base here or a little tight area? Yeah, it's way out of the base. And it's more of just a sign that this space is continuing to work because you could really throw a dart at anything in this group. And they pretty much look good. So we had a lot to choose from. This is one that we've been on Swing Trader and we're both trading it. So we went with it. So this is more a sign of when you look at it, just going, are the leaders other than AI holding up and acting normal and natural and more of a sign of health for the market? And it is. Now, GLD looks a lot weaker than silver.

49:17Um, GDX, uh, which I also have a position in, um, that is looking better than GLD right now. So you can, but you can spread it out and do some of all of them. And that's how I'm approaching it by owning silver, gold, GDX and, and, uh, the Pan American silver, just to try to have a broad, you know, um, you know, broad exposure to this theme that I think could, you know, have a long, long way left in them. And so that's it. We can move on. Well, if it's time to move on from here, then that's that's your your chance to share your charts. A lot of these charts, we're going to go through these a little bit quick.

50:02And part of that is because we don't quite have the trend yet. So there isn't much to talk about on some of these. But Mike, go ahead and start. You know, we have not everything is going to be quick. So let's go ahead and start with your Bob Weir. Okay. That's the first time you've ever said Bob Weir. Do you know who Bob Weir is, Justin? He's some guy that does some music stuff, right? Oh, God. What are you going to do? Okay. Oh, God. I got to help you out. So this is the Bob Weir Take a Step Back where we look at the weekly. And you can also do this on the monthly just to see is Is there anything else here that we're missing or that we'll add to the picture?

50:45So we're going to look at a bunch of charts in different ways. And what I like to do is not lean too heavily on any one of them, but I just let it tell me a story of the health of the market and any, you know, any areas that look stronger or weaker than others. So with the weekly candles on this, you can get a sense for where are you? Is it normal or natural? Is it healthy? This one, I really actually like this weekly candle because your bottom wick is so long. That tells you you cleaned out a lot of people this week and then you were able to close back up. Now, well off the lows. But what's not good about it is it's a pink candle because just a sign that it closed weaker than where it opened.

51:33So it's a mixed on there, but being up relatively near highs, I would say that the tie goes to it being more positive than negative. Let's look at the same thing on NASDAQ. Much better there, right? You've got this tiny little what I call a sliver body. So it really closed about where it opened, just slightly below it. But you had this huge bottom wick where it really cleaned out a lot for the week. Very constructive. you know not a set not what i would call a setup week because the spread was too uh too wide for that but it looks like it wants to go higher just looking at it through this lens let's look at the iwm which i have a position in and this is a this is the weakest of the candles because you got this big negative body uh the distance between the open and close but on the good side is you did have a close above last week's low, but not into the body area of it, which that's, you know, you'd prefer it to have been at least closing where last week's open was.

52:40So it doesn't have that. It has a decent bottom wick, but, you know, I'd say that the composite and as a composite looked the best, SPI looked in the middle, and then this one looked the worst there. Let's go over to our original regression lines. Nothing to talk about here. This one, for a while, we were using a different one. Those broke as well. But really, the October 10th broke the look of this regression. So we're waiting for a new channel to merge there. Same thing on the NASDAQ. So what we will do is eventually we'll use the 11-21 date and then go out 50 days for our next channel or regression lines.

53:25We'll skip our alternative ones. Now, here's our 50 % retracement. And this is an art. You can pick all sorts of different highs and lows. This week, I decided to go with the high, this high here. And then what was the date on that? the 29th of October, and then the low here in November, on November 21st. You want to live in the upper half of that area, and that's where you are right now. The 50 % retracement is 670 and change, and we're in this area, a sign of strength. So that's good. The same thing here with, oh, I guess I forgot. Huh, must have gone away because I did put those in here. Let's go ahead and add that back.

54:15Not sure what happened. Well, now we can see how you do it. As simple as that. So there you go. The same high, same low. And it shook out below that this week on that bad day on Wednesday. And now you're back up above it. And so you want to stay in that area. Let me see if I did the IWM. Yes, I did do it on the IWM. This one, I wanted to show that you could keep old ones in there. So this was our, oops, I've got to move this so I can see that date, the October 10th low and the October 15th high just to see what was going on. Now, obviously, this traded underneath it over here and above it over here.

54:55But with that, it's still in the upper half. Now, we could slice this a bunch of different ways. Let's move over to our lines of importance. And we'll start off with SPY here. Now, we've got two lines that are important pretty much in the same general area. One was from over here, the highs in October. The other one is a low this week. So I would say when you've got the congestion there, you can just remove one of them. Let's remove that one. And we'll only look at the low from just to keep it a little bit on the simpler side. The low from this week becomes really important. The low from the 21st of November is important.

55:40Over here, there's a million other lines that are important, but really this low from August 1st becomes your clear line in the sand. That's why it's thicker on there, the 619.29, because it coincides with your 200-day moving average, which is that teal line there. Let's go over to the NASDAQ. Again, a lot of noise on here. One area that we want to get above where I have the high from the 10th this month marked. Then you've got this one here, which is the high of the October 10th day, which kind of went with today's low. We're going to go ahead and get rid of that one to simplify this chart and, again, only use the low from this week, which becomes very important, the low from the 21st.

56:28And then our line in the sand, again, is going to be way back over here, right along with the 200-day. So, the same thing with IWM. We've got the high from October 15th that we want to get through, and then the low of this week on the downside. And really what's important for this one, because we've had years and years with this fading, is the low here, the November 20th low. We want to stay above that or this is going to be kind of a broken chart. Now we can look at my Fibonacci moving averages on here. This is something I've been using for years and I've recently just been sharing it on the SMTs.

57:15It might look like a lot of noise to you at first, but if you put this on your screens, I think you're going to get a lot from them. I use Fibonacci numbers. You can pick other numbers, so 358, 13, 21, 34. You can just Google them to see, and they space out nicely, just the way the whole Fibonacci works out. So you can see very, very short term to really long term and everything in between proportionally. And what you want is you want those stacked properly as we were over here. That really kind of defines a trend where your shortest term moving average, your three is above your five and your five is above your eight and your eight is above your 13.

58:00Your 13 is above your thick blue line, which is your 21 day and so on. Or your 34, which is something I don't talk about a lot, but is a very important one. And that's that kind of tan one. And that's why I put it thicker there. So that's a sign that you're in a good, healthy trend. And we're not in that here because you've got a bunch of crisscrosses in there. And that happens, but it just tells you you've been in more CHOP. And, you know, you can look at this or you can look at your account to see if, well, maybe some of you haven't been chopped up. So very happy for you. But I've been chopped up during this time.

58:39And really, those moving averages are kind of another thing to just a warning. Let's look at the same thing on the NASDAQ. Same thing there. Let's look at the IWM. A little bit better there, frankly. And you always kind of want to look and see where your shortest term moving average, where is that? What is that one holding above? And this one held above its 21-day, which, again, is that blue line there. Let's just look at RSP for fun. And that one actually looks the best out of all of these, where they're pretty much stacked again with today's action, where it looks like the three is above the five and the rest of them are stacked properly, which is one of the reasons why we put RSP back on.

59:27We'll do our final, if that was too much noise for you, here's our simplest one. This is Allie's favorite, and this is just the 21 day. So we started off with taking a step back with the weekly. We looked at a bunch of different ways of looking at things, and now we're just keeping the very, very simple way. is your low above your 21 day or not? And our low is not above our 21 day, but our close is back above it. And for me, I really want that low to get above your 21 day, close up on the day, and really do that for at least three consecutive days where your low stays above your 21 day and you close up in a material way on the day.

1:00:08And then you've regained that moving average, in my opinion. So we're at day one of that. First, you got to get a close above the moving average. Then you got to get your low above the moving average and close up. Then three consecutive days, your low above the moving average and close up. That's just how I like to look at things. Not the only way, but it is my way. Same thing with the NASDAQ here. You get a close back above it, but we need to get the low above it. Let's look at the IWM. this day is our first day where our low is back above the 21 day and you closed up. So even though we had some things that looked weak, like the weekly chart and some of the other charts, from this standpoint, this one looks the best compared to SPY and the NASDAQ.

1:00:57Now let's look at RSP, much better, right? It's held above that for this, you know, all the way going back to the 25th of November, it's been able to stay above your 21 day. Let me stop sharing there and just go over to one more thing. And I'm just going to do the WebE-RSI stuff. Did they find somebody to edit it? Oh, yeah, we're all good. We're good. Okay. All right. I was freaking out for you. Let's see. So we wear a lot of hats. It's not just hat man that wears a lot of hats. We wear a lot of hats. A lot of people are having to pick up the slack of my mistake. So hopefully we get the paper out.

1:01:43I hope so. All right. So here we've got Spy using the Webby RSI. What is this? If this is your first time looking at this, this bottom part, that's your Webby RSI. It's just measuring in terms of your ATR, your low versus your 21-day. So when your low is through your 21-day, you don't have anything there. So we don't have a Webby RSI to look at, which is also giving you information that you're in that kind of riskier chop area. Same thing with the NASDAQ. But what was worse about the NASDAQ is you started getting this kind of burnt orange histogram there, even though it was tiny. This is in terms of ATRs, so it's only like 0.28 or 0.25 ATRs, where your high was underneath that moving average, which is a real sign of weakness.

1:02:36And let's just scroll out here. Look at this big wall of orange that ends up happening. And that was back during the bear market that we had at the beginning of the year with whole tariffs concerns. and you can just see that wall that you wanted to just stay out of that mess. We will finish this one by looking at, oh, I need to look at the IWM as well. But the RSP is starting to get this wall of blue. We just want it to be bigger, which would mean your low would have to get further away from your 21 day to really show some power. We will look at the IWM there. and uh that one we can see this little little poke there and we're starting to get that's like one brick in the wall and uh i'm gonna stay away from those references you knew where i was going i know you knew where i was going there you go how can you eat your no i won't even go there there's so many things i wish you were here all right so here is our um and i could go on forever The off-high, this is our Bob Marley off-high, and it's just measuring in terms of ATRs how far you are off your high.

1:03:51And we use our low in the calculation there, so you rarely see it all the way up to the top because that would just be very odd. But the green area is four ATRs, yellow area is four to eight ATRs, and your red zone is under eight ATRs. So how I like to look at this is, one, just how many ATRs off the high are you is just a kind of a wake-up call. If you're in the red area and you're still bullish and you're going down, you've got to, you know, it's a wake-up call for you. In the green area, you don't want to get too bearish. It's a reminder to not get too bearish and that I can get too bearish too quickly.

1:04:32And so this is one of the reasons why I created this one. And then the other thing is that each instrument, whether it's a stock or an ETF or an index, will have a different character. Where off the high does it like to come off before it starts getting support? And you can see this one, it really likes it kind of in this area, you know, shy of two or shy of three ATRs. It tends to get support. You get outliers like this one that got close to four, this one that got into the fours. But you kind of start seeing where does it get support. And it got support in and around that area again this time.

1:05:16So, again, more of a normal and natural. Let's look at the NASDAQ. And that's a bit more all over the place. This one you can see it tends to get support in the high three ATRs off the high. It did that there in August. again at the end of August, again over here. Then it got a little bit worse over here, but then this week still in that same type of area. So that's on your positive side. And we will look at the IWM. And this one, it feels like it's kind of in the, you know, the two and a half to three area. And that's about where you got. So what does all these squiggly lines mean? You put you weigh each one a little bit differently.

1:06:04I put the most weight in that simple chart at the end. You're at the end of our trade station charts that that was just the 21 day moving average. And just to keep it very simple, are you above it or are you not? Is your low above it or not? And we went through that. So we're at the beginning phase of kind of a recovery based on those things. and you had some mixed results in there. Some things look better depending on what lens you've looked at them through. And look, if you don't like all that, if it's noise to you, just pick and choose the ones that work for you. I've got more ways of looking at it, but this is the bulk of it.

1:06:49And I don't look at psychological indicators. I don't look at seasonal stuff. I don't look at VIX, put to call. you know, any of any of that noise. And so if this feels noisy to you, it's very simple. It's all just based off of high, low and close and open, you know. OK, well, so this is your last SMT video of the year. And just maybe give a kind of wrap up. I mean, there's a lot of talk of what the end of the year entails in terms of window dressing, low volume, people, you know, already going on vacation. And then, of course, there's the first week of, you know, the first week of January, which a lot of people look at, especially after you've had a, you know, decent year in the indexes, where sometimes there's some selling as people have pushed their tax burden to the next tax year.

1:07:44So anything to kind of close out the year besides a happy holidays? Yeah, I was looking to see how long it was. But since you asked, I did Webby Rambles On, which is my podcast, non-IBD podcast that I've got that is on my YouTube channel, Webby 5150. If you forget, you can just go on to my X or Twitter handle M Webster 1971. And I'm always posting links there. But tomorrow morning, I've got about two hours, give or take, on that topic that you're talking about. So I will spare everybody listening to it now. So those who have a hard time sleeping and want something to fall asleep to, they can listen to that tomorrow morning.

1:08:29And it's this procedure that I go through every year because Bill O 'Neill would always say if he was ever going to take a vacation, it would be in January because Januaries are so tricky. And you and I both know that he never really took any of those vacations, but he would always just say that. But January is not working less, working less. But January is a time where there's so many cross currents that end up happening. You don't want to be out unless your instruments are telling you that, but you want to approach it in a different way. And so what I do, the same thing I do every year where I look at every year, year end, the last few weeks of December and the first few weeks of January.

1:09:15And I try to find ones that look similar, a similar setup to our current year. And that's what I did in that. And then just try to gain information from there. And it's just something that helps a lot. I hope people watch it and stay awake for it because it is a lot of info. If you're not going to watch it, this is what I'll tell you. That between now and the end of the year, use your normal instruments. At the beginning of the year, just lean on more on having your foot off of that gas just to be on the safe side until all your instruments are kind of perfect. because you've got these cross currents where people who didn't sell at the end of the year end up selling, you know, because for tax reasons, you have a lot of window dressing that ends up happening from big institutions that, you know, maybe they don't want to show something on their books or they do want to show something on their books.

1:10:12So there's lots of gyrations at the end of December and those get unwound in early January. So that's where all these cross currents happen. And what you don't want to have is if you're up to your eyeballs in stock and you get one of those wild moves in January to then be in a negative mindset to set you up for a really bad year. So if you just ease off the gas in early January until you get some clarity of how the market's trading, that's it in a nutshell. So I saved everyone a bunch of time, but there's a lot more details. But what if we need to sleep and we want to watch it anyway? You need to sleep.

1:10:51You got Ambien. You got Webby Rambles on. They're about the same, you know. Well, that's going to wrap it up for us today. Thank you so much, Mike. One more thing. I just got to say Merry Christmas to you and your family and to everyone who is watching. A very special Merry Christmas and a Happy New Year. And I will see you the first week of January. Sounds great. Well, a great way to end things. Thanks a lot for the commentary. That's going to wrap it up for us this week. And we will see you on Monday. It's going to still be a trading day. So we will have IBD live. I'm actually going to be out that day.

1:11:23So someone else will be hosting in my stead. We'll also have the Stock Market Today video. Someone's going to be helping on that side as well with Alexis. And then we're going to have a shortened trading day on Wednesday and the day off on Thursday. But right back here on Friday with the Stock Market Today video. We'll see you all then.

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