Is The 50-Day Bounce An Opportunity? Intuitive Surgical, Marriott, Carpenter Tech In Focus

30:40And go to the monthly on this one to contrast the two. So this, look at that RRS line historically. It's just a place where big institutions can go in and hide and, you know, hang out with Buffett. You know, like there's nothing wrong with, you know, people are always going to drink their Cokes and related products and everything. But that's not at a growth stage, you know, a monster beverage or something like that. That's something where, you know, that we would trade when it's in position. But yeah, so I think the XLP was hiding versus the XLV, there's a rotation. If that makes sense. No, totally does.

31:24And Coca-Cola is the fourth largest weighting in XLP. So it's got about six and a half. Yeah, six and a half percent. Walmart and Costco are the two largest at around 10 percent. And then you've got Procter & Gamble at about eight. So back to our sector list, we went through XLV. How about IGV, the software? There are a number of software stocks that are looking interesting. This is a very kind of diverse field. And of course, IGV, you know, is probably being bogged down by Microsoft. and some of the larger components there that have not been doing as great. So you might have to do a little bit more of the searching for the best stocks in this group, as opposed to the ones with the heaviest weight, because I know I will actually, you know what, Palantir is Palantir is the heaviest weight now in in IGV.

32:24But Microsoft, you know, Microsoft is next. CRM, you know, which that's been struggling quite a bit. Oracle. So, you know, IGV, again, does have a lot of that dragging it, dragging it down. XLY, this, of course, is the combination of Amazon and Tesla. I do have both of those stocks. They combine for a 40 % weight in XLY. One of the things we've been talking about is RSPD. The equal weighted version of consumer discretionary has been quite underperforming. So, yeah, that's getting support at the 200-day moving average line and had a good day today. So we'll see if the consumer gets back on track here.

33:14Going through a few more of the sector spider, XLI, also, you know, that had moved back above its 50-day moving average line. Gold, GLD, this, you know, had a nice move here coming out of this base, pulled back. But you made the argument last week, I believe, that, hey, this might not be dead yet. I don't think I don't think it's I know that there has been a lot of high profile folks who are saying that it's it's over and done and everything. Go to a monthly. My take is when a commodity goes on a trend, they go a lot longer than folks think. And it kind of just got ahead of itself. And you can see that on a monthly chart.

33:58So pausing, let's go to a weekly. You know, it just got ahead of itself. pullback, normal and natural pullback to the 10-week line. That to me is just saying, look for an entry point. Not that it's done. I think sometimes folks just focus on the daily chart and not the weekly and the monthlies when they make these types of calls. But we'll see. I would buy it if it takes out the highs of the last couple of weeks and give it a shot that way and then probably use the low of this week as a stock. Yeah, makes sense. XLF, there have been some money center banks that have been looking interesting. JP Morgan, you know, was probably one of the better looking ones.

34:46Morgan Stanley, you know, that one was getting supported. It's a 50-day moving average line. KBWB is one that has a lot of those big banks in it. XLF, a little bit weaker. That's below its 50-day moving average line, partially being dragged down by, you know, Berkshire. Berkshire Hathaway, although that looks like it's, you know, picking up a little bit. So that'll be interesting to watch that. ITA, this was another area that kind of got identified as an area of, hey, this is something to watch. And it's not like this hasn't participated. I mean, you look at the move of ITA, this aerospace defense, since April, and this has absolutely been participating.

35:27But it seemed like there was a lot of strength here. 0.7 % up for the ITA. What do you think here? I was, when I was searching for, because we had gotten very light on Swing Trader, because that's what we had to do. We were trying to hold some things longer than we should have, SPY included, and finally threw it out at the lows. But then I was looking for, when things firmed up, I was looking for what we could add to the list and just doing my normal screening that isn't specific to a sector or industry. I just look at everything. And it's just one by one, I had like four or five names in this space that looked good.

36:11And I was just like, let's just go with the ETF because there's a lot in this area that are in position. And then you have an easy stop because your expectation now is you've come down for two weeks on that level and then had the major upside reversal at the outside day, upside reversal at the 50-day. If you're going to give it a shot, that's where you give it a shot. And then if it takes out the lows, then you have to back away. We already talked about RSP and what's going on there. NLR, the uranium and nuclear, we had this on our list, but as you mentioned, a lot of these were going nuclear and fell fell fairly hard, but a nice upside reversal today that was up 1%.

36:58To me, that looks like the second bottom of a double bottom, you know, like a very short one. You had your first bottom at 136.56. This is your second bottom. And unless you're going to use a shakeout plus three or a move back above the 50 as your entry point, that the going above your horizontal line there, your top one, that would be, you know, kind of a classic entry, probably getting in before then because that's a mile from, you know, up from here. But it doesn't look like it's over yet. Yeah, making a good point there. XLB, the materials, that is also kind of suffering. By the way, this is the first time I'm, if you see me looking over here, I've figured out how to watch the YouTube comments.

37:46So I love the YouTube comments. I mean, we brought up some music at the beginning and everyone was talking about all the concerts that they had gone to. And, yeah, the comments, the comments are great. And there's a whole sometimes it's distracting. I'm like, you know. Yeah, I'm trying not to look. I can see it's like, wait, I'm supposed to be doing a show, but I'm watching all these comments. And then sometimes there's a whole soap opera going on there, you know, like, oh, hey, how's this going with you? And this, you know, you get to find out about all the lives of our audience, which is just a lot of fun.

38:18Well, just for the YouTube folks, who do you like more, Sammy or David Lee Roth? And I will block you if you give the wrong answer. Oh, I think I think Tim already might have gotten a block then. So XLRE, another place where typically folks, institutions tend to hide. This had a strong day up 1.3%, but still below its 50-day and 200-day moving average line. Of course, one of the things that has been notable here is the 10-year treasury yield and how much that went up. That certainly was putting some pressure on there. But man, sometimes that stuff just doesn't correlate the way you expect it to.

38:59XLU utilities, kind of like nuclear. This is an area that has been really participating, the AI adjacent. And really strong day today. And back above the 21-day moving average line, kind of clearing this tight area really held the low, you know, that it made, you know, earlier this week. So kind of interesting. We almost added that to Swing Trader today for all the reasons that you mentioned. Looks perfect. Frankly, we ran out of time because I was trying to decide between some different stocks or ETFs. And it was just, we just ran out of time. I think this looks, you know, really like a great entry, like the best entry we've seen in it for several months.

39:40So I think that looks really good. Yeah. KRE, we already talked about financials, but the regional banks finding a little bit of support right there at the 200 day moving average line. XLE, this is back above its 50 day moving average line. It's been some choppy action here, but did get support at the 200 day moving average line. So that's something to watch. We already talked about XLP. And then rounding out our sector analysis look is GDX, which we already talked about gold. Oh, one more that I should add here. The top spot belongs to Bitcoin. iShares Bitcoin Trust, IBIT. That is still below the 200-day moving average line, but that ended with a 2.8 % gain today, well off its lows.

40:25And it did seem to just kind of test that earlier low of this week. So any comments there? Yeah. So I'd say with the iBit that it's finally at least giving you some sort of pattern, right? A double bottom where this is your second bottom where you're, if you could just point to where the middle would be. So are you talking about the double bottom? 71 to 59 is your first bottom. You go up and then, yeah. Yeah. So now at least we have a place to look at because before it was just in a downtrend. Now it's trying to stabilize here. It gives you something to look for if you're going to buy it. Or you could use a shakeout plus 5 % or shakeout plus 3, depending on your terminology, using the 5931 as your level.

41:19So 5 % above that. But it's in no man's land right now. It's just, it's base building. Let's look at Ethereum for a second, which had more damage done. I think there was a needle involved. So, you know, sorry, it's Friday. This one looks like a broken chart, right? You could still say that the 3205 is your midpoint of your double bottom, but it would be a really lopsided one. And so that's more of a concern to me because when the crypto space is hot, then it seems like it flows. People are making money there and they're more loose with their money in the stock market. So I do think that they're connected.

42:05And I think a lot of the pullback that we saw on the stock side was driven, at least in part, by the sell off in the crypto space. because that's pretty severe from 36 on down to wherever, you know, got into like mid to low 20s or 24. Yeah. I mean, this low right here, 23.65 is how low it got. So, yeah. I'm Laura Thurow, Managing Director with Baird Private Wealth Management. For so many of us, life is busy. Between balancing family, career, and community, finding the time and focus to keep your financial plans on track can be a challenge. At Baird, we understand. Our financial advisors will partner with you to create a plan that's uniquely yours.

42:51One that gives you peace of mind and confidence so you can focus on what matters most. Discover the Baird difference at rwbaird.com slash WSJ. Okay, let's talk some stocks and then we're going to go through the Webby charts. Let's start with, as you mentioned, a lot of medical looking interesting. ISRG, I do have a position. Really strong move up above its 200-day moving average line. And then it just held really nicely. So, yeah, this is one that we've been talking about for a while. And a nice breakout above that 552. Not quite 5150, but it's kind of close, right? 552.50, you know, something.

43:34So what do you think here, Webby? I do have a position in it. We made it our biggest position on Swing Trader. Really, really like this setup. So let's go to the monthly for a second. And on this one, what I like about it is it's been a model book stock many times in the past. That's something that Bill would always look at and see. Has this stock been able to have a huge move in the past or has it just been a laggard? And this has had some massive moves with our whole DaVinci products and everything that, you know, when it first came out, it was very revolutionary. Now, you know, it's got time under its belt.

44:15So people, I think, feel more comfortable with it. And now it's just been base building. Go back to the monthly just for one more second, because when I say base building, I'm also in terms of the RS line. because that RS line has just been base building for a long time, just kind of just going sideways in there. And it looks like it is ready to, you know, it's just been hibernating and can have another move higher. Now let's go over to the weekly for a second. And again, while everything else has been running, this has been having trouble. Let's go down to the quarterly numbers and see what we've got there.

44:57So some acceleration in both the earnings and the sales, Not, you know, it's not dramatic, but it is there. And that was a big deal for Bill. I've studied it. It is a big deal because kind of an inflection when you get both of them going. This is set up to have a monster move. Doesn't mean it's going to. So you want to know where where you're wrong. Let's go to the daily to see. One thing I just wanted to point out on the earnings is this also, you know, 18 percent earnings earnings per share growth rate, 18 percent annual is, you know, it's OK. It's not spectacular, but an earning stability of eight.

45:31That's kind of reflected in this earnings earnings line. It's just got very stable earnings. It just performs, grows just quarter after quarter very steadily. Yep. Well said. So with this, if you're a position trader, you could give it a little bit more room and give it to the lows of last week. Or if, you know, swing trading, you would be a lot tighter. You know, the lows of today to exit some and the lows of yesterday for probably the rest of it. But this is how they look when they've been hibernating and then they're ready to do another move higher. And I liked how it was acting in a bad tape.

46:12It was, you know, wasn't wanting to go down. So this is probably my favorite new old stock right now. That and Lily, frankly. Right, yeah. Sometimes it's not about going to the brand new shiny object. Sometimes it's about the old faithfuls. Let's go ahead and also take a look at, speaking of kind of an old faithful from way back when, Marriott International. A number of travel stocks were kind of looking interesting. I didn't have this in the sectors today, but, you know, Jets is something that we, you know, typically look at in the travel space. But this is more like, you know, some of your hotels.

46:54Expedia had a really strong move on earnings. But let's take a look at Marriott, which earnings are behind it. It just had earnings kind of popped out above this, you know, resistance area and has done a nice follow up and kind of breaking out of the space now. Yeah. Poorly drawn line there. Sorry about that. Let me try it down. That's okay. I knew what you were doing. You can't do everything right, Justin. Let's go to Expedia for a second. And boy, I just looked at the time. I must have been chatting too much. Sorry. So when you get a big stock like this that moves on earnings, you always want to look at the rest of the group to see if something's in more of a better position.

47:35obviously this is much stronger than Marriott with the move that it had but it was just out of out of position to be buying it in the type of environment that we're in right now let's go back to the Marriott um I'm not in love with Marriott I stayed at Marriott yesterday it was okay same as a Hilton same as that like I don't have any like it's like whatever is the best deal in the in the right location so I don't I haven't noticed a material difference between Hilton or or or Marriott or some of the, or Hyatt's or some of the other ones, but it looks good. The earnings aren't that spectacular and pretty pathetic, frankly.

48:14But at least it was breaking out of a base. You know, this, like another kind of like those other ones that we were looking at is it's been going sideways for a long time. So it has a springboard that it can go up from. And I really like how tight that base is. There was one in... Just 11%. Yeah. All those tight weeks in there on a weekly basis almost look like it's a stock that's going to be acquired. And I think Bill had one of these in how to make money in stocks. It looks super, super tight forever. And then when I can't remember, I think it started with a D, but I could be I could be remembering it wrong.

48:54But one of the was a Dollar Tree or Dollar General, one of those. Yeah. Yeah. I mean, like it looked like it had been acquired. It was that tight. and then have that move. And maybe it was being acquired and then the deal fell through or something. But when you have a long, tight base like this, it's something that it can really move up from. And we'll see, but the earnings are pathetic. So it's more of a swing trade. We'll wrap this up with, and I do have a position in Marriott. I have a position in both that and CRS. Yeah, and then I also have a position in CRS. This is one that we had on Swing Trader earlier this week, and we survived.

49:36So this got an ad today. But strong move on earnings. Pulled back a little bit, and now it looks like it's on the move again. It kind of reminds me a little bit of the move that we saw from MDB, where it kind of goes up, goes sideways for a little bit, and then starts moving again. That's actually what I wrote my column on this week. But back to CRS. So as you mentioned, in the aerospace defense area, and these guys are specialty alloy metals. That was the group that they were in before. Now it got moved over to aerospace defense, but really strong reversal and powerful, powerful close. They deal with heavy metal?

50:16I'm not sure. So I really like outside days. So meaning we traded below yesterday's low in a significant way and above yesterday's high in a significant way. Like there's always, you know, you see a lot of outside days, but is this marginal like this one? You don't have to use a track price or anything. It's clear. We traded outside of it. So what does that mean? It means it shook out anybody that was had a really tight stop on their reverse and then powered through. There was enough true buying power there to push it through the prior days. Hi, I love those because you treat them like an upside reversal.

50:55So that low of the day ends up becoming, you know, a very clear line in the sand. So if we travel below today's low, we'll back out of that position. But this is normal and natural. You have that big move up on the, how much did it move up on the earnings? The gap up the big day? That day was up 22.7%. Yeah, so massive. And then still moved higher and then paused. It's like this is an ideal setup. Doesn't mean it's going to work, but the odds are on your side. That's why we, you know, increase the position. And it has the group move behind it. So we'll see. Yeah, a nice combination. So, Mike, are you ready to share some charts?

51:41Yeah, I'll be fine. Okay. Let's turn it over to you. Sorry, folks, that we've gone a little bit late. You know, we were just watching all the comments. Yeah, just having some fun. Yes, exactly. And there was a lot to talk about this week. you know, upside reversals, you know, hey, it's a it's a day where you really want to be paying attention. So go ahead. Take it away, Mike. So this is our Bob Weir, take a step back, look at the weekly chart. And this is going to be the first if this is if you're relatively new to the SMTs, we go through a bunch of charts in this next segment. And what you're trying to do is paint a picture of you're going to see some things that are negative, some things that are positive and to try to get a sense for how negative or how positive it is.

52:23So with this on a weekly basis, obviously having a big pink candle, that means that you close a lot lower than you open for the week. That's a negative. But on the positive side is you get a really long bottom wick on there with no top wick. So the bottom wick means you travel down below there and then close up well off your lows. So although it's a negative candle, it's clearly a negative candle. That bottom wick is meaningful. It also tells you that this week's low is an important line in stand. If you go below that, then you're most likely, you know, you've got to go lower or you should go lower.

53:07And kind of a similar thing with the Nasdaq. you know, it's just, when you look at this, you've got to ask yourself, what would be normal and natural? A lot of things, you know, going down, having an inside week, you know, just staying between the high and the low of this week would be normal and natural. But it doesn't give you this expectation that you're just blasting off to new highs. And it also doesn't give you the expectation that you're falling apart. If we were closing at the lows, like we did like four weeks ago, your expectation is to move lower. It didn't because of the news flow, but that was your clear expectation.

53:49We'll look at IWM. And this one had much more of a shakeout and you can see the shake up below the October 10th low, and it was able to move up. So that one actually looks better than the other ones from that lens. Now let's go over to our original regression channels that we had. These are the ones from going back to the May timeframe, the May 12th. And then we went out 50 days from there to the July 23rd. And we put this one to bed several weeks back because it was living underneath the green line over here in around October 14th or so. And so we threw that one out. And we did the same thing with the NASDAQ.

54:32But at that same time, we went ahead and put the IWM on there with a different date. And that was August 1st was our one anchor point. And then the second anchor point 50 days out was October 10th. And so with this one, about... And just to be clear, we didn't choose October 10th because it was such a critical day. It was because it was just 50 days past August 1st, 50 trading days. Exactly. And then this one, you know, after you were living it underneath it for, you know, several days, certainly on this day on the on the fourth, you had to throw that out. What do I mean by throw it out? Meaning not that the market is going to fall apart, but that trend is now decisively broken and you can't use that trend.

55:16Now you're looking for a new some new anchor points because it's too far away from there. Now, let's use those same dates that we use the IWM, but let's use it for SPY and NASDAQ. This one was really setting up a couple of days ago where it looked like if you've never watched this before, the key thing to look for is when you go through this green dash line. That's just your minus 0.75 standard deviation. Don't worry about that. What it is is when it goes through that line, it wants to go back to its regression line or a line of best fit, which is your white line. I like to call it home base. It wants to mean revert.

55:56So now at this point, we're not so far underneath. Well, we're very far underneath the green one standard deviation solid line in terms of price, but not in time. If we were under here for about three, four days, we would have had to throw it out. But this now can get back in there. And I would still use the same level, the 0.75, which is this green dash line. If it gets through there, then you're looking at wanting to gas it because then you should be traveling up there. We will see how that plays out. Same thing for the NASDAQ. Again, this green dash line right in this area, that's where I'd be gunning it.

56:40So we'll move over to our 50 % retracements. I changed these from the October 10th to the October 10th low in our recent highs. And we pretty much closed right at our midpoint. We want to live up in the northern hemisphere. We'll see how that plays out. Same thing with the NASDAQ. This one, we are underneath it. So that's a negative. You know, so each one you just have to be objective and say, is it positive or negative? This one is negative underneath that 23 ,100 and change. So we want to get up in this area. Let's see about the IWM. That one's the worst. It actually took out the October 10th lows, but with that upside reversal, looks like it wants to go higher.

57:24Our next chart, this is our levels chart. I put a green dash line on here for the first time in a while. that's marking a level that we wanted to get above in the very short term. And so that is, you know, your highs that you had around October 9th and October 10th to get back above that right away. And then today's low becomes a very important level. And then the October 10th low is also extremely important. And the same basic thing on the NASDAQ, just using the highs from October 10th. And then I could have put a line here as well at today's low. I just ran out of time. IWAM, it went through the October 10th low.

58:12That was our warning level. But it is trying to get support there. So we'll see how that plays out. Our next set of charts. These are all of our moving averages. I find this very helpful to tell you in an objective way to let you know, are you in a nice trend or not? And so I just use very short-term moving averages to longer-term moving averages. And I choose to do them using Fibonacci numbers. That's just kind of one of my things because it breaks them out in a nice, even manner. So you can just Google the Fibonacci numbers, like 358, 1321, and 34, 5589, stuff like that, and just plug them in or use your own.

58:54You use a three-day, a five-day, a 10-day, a 20-day, whatever you want to use. But with this, what I'm doing is seeing, are they stacked properly or are the short-term ones crossing below the intermediate terms and so on? And then we have a lot of crosses here. So for this to really be out of the woods, you need the short-term ones, the shortest term ones to be at fresh highs and then on down. That's not what we have. Let's look at the composite. Same thing here. They're crossing. So it's just, you know, what happens in pullbacks. Same thing here on the IWM. That looks worse. Ali's favorite chart and mine, too, would be just simplifying it.

59:35Just remove all the noise and just look at the 21 day exponential. That's your green line. Is your low above it? Is your high underneath it? Or are you trading between it? Well, our high is now underneath that. That is a very negative thing. Yes, we had a good candle today, an upside reversal. But the reality is a trend down, how does it start? It starts by breaking the 21 day, then getting your high underneath the 21 day, and then your high staying underneath your 21 day. It's the same thing as an uptrend, but in reverse. So, yes, I like the candle. I like the upside reversal. But the reality is this is a bad chart because our high is underneath it.

1:00:16And then the same thing with the NASDAQ. And then the same thing with IWM. and then same thing with the RSP. So that's those. Let's switch over. Basically, we've got some work to do, right? Yeah, we have some work to do, but it's not broken. Let me share the one last set of screens. So we're going to go, can you see my... Yep, I'm working at the Bob Marley. Yeah, okay. We're going to start with the... Yeah, the WebEI. I got a clock. Can you explain? Yeah, so this is the WebE-RSI. This is basically where you are in relation to your 21-day moving average line. That's the histogram. And then also where you're in relation to the 10-day.

1:00:59Right now, because we've been below it, you aren't going to see much here. You're actually getting that orange histogram because we have the high below the 21-day moving average line at this point. So not the typical analysis that you usually will do for the WebE-RSI. Exactly. Thank you for saving me there. Yes. And so you don't want to see orange on here. You want to see a wall of blue or teal. And that is just going to be once our low gets back above that 21 day. Let's do the same thing for NASDAQ. same thing there. We've got a little bit of an orange one that popped up, but you see that happen.

1:01:41It happened here. It happened here. You know, what we don't want to see is a wall of orange. That means your low is staying underneath your 21 day. And so we will. Although I will say sometimes it's easy when you see that wall of orange, it's easy to just stay out, right? Yeah. When you're kind of doing this back and forth, sometimes that's a little bit more difficult because you're like, oh, I need to get back in and then it's back out. And like what we're seeing right now with the the orange line, you know, kind of stopping and starting because of where we are in relation to the 10 day. Well, well said.

1:02:16We will finish up with my daughter's favorite one. This is our Bob Marley off high one. And what this does is just uses the low in terms of ATRs. And let's just blow this up a bit. So what this is telling you is that during this trend, I like to look at times of when does it kind of stop, at what level. So here, back on August 1st, it stopped around three and a half ATRs. Recently, on October 10th, a little bit more than that. But now we've gotten worse. So this is another negative. Because if it would have stopped at three and a half, give or take, that would have been normal and natural. and could do that over and over again and still be healthy.

1:03:02This is not healthy. Just call it the way I see it. That's not a healthy way that looks. Same thing with the NASDAQ. You were coming along, stopping around 3.75, give or take. Same thing again here. Mid-August, same thing over here on October 10th. Now we've gone into the yellow area. And the green area is four ATRs. The yellow area is four to eight. and the red area is more than eight ATRs. And then let's take a look at RSP. That held up better. So that is a constructive sign. It got the worst here on August 1st and it was a little bit better on October 10th and now it's actually held up. So that's a good sign, but we will see how everything plays itself out.

1:03:58So next week, you know, a few things that are coming up. Of course, we have a Monday that we'll be looking forward to. And then Tuesday is Veterans Day. So the market will be open. But, you know, there's a lot of things. I didn't mean to get you started, but the market will be open. But a lot of, you know, the bond market will be closed and a lot of things will be closed. It does tend to be lighter trading. um so um well and i should also mention that over the weekend i've got um i've got a ton of friends coming for the ucla nebraska game i think we're gonna have like a group of 25 is a badminton game or yeah it's badminton right exactly so uh so yeah if anyone is uh if anyone is at the rose bowl uh this this uh tomorrow uh come by and you know find me in lot h um but uh yeah so we've got you know We've got next week, basically Monday that we're going to be looking at.

1:04:50But what's kind of your idea for next week and how we kind of go into it with our exposure? What are you looking for? Okay, before I forget, because you brought up Veterans Day, and then I will circle back and answer your question. Man, New York Stock Exchange, please, you know, CEO, whoever's in charge, please. I would love to go on a Zoom call with you and talk to you about why you remain open on such an important day. There's no excuse for it. We need to close for it for our veterans. It's disrespectful. It's rude. It's un-American. And this is a hill I will die on. I'm not cool. And do want to thank my father and everyone else who has served.

1:05:37And, you know, he signed up and fought in Vietnam. And it's there's no excuse. So anyways, switching gears. Sorry. If you don't like it, you can you can tweet me on on M Webster 1971 on on X and let me know why we should stay open. So for next week, what I would do is your expectation. Look at the news that happens over the weekend and Monday morning and go, okay, well, what would be normal and natural reaction to that? But given no news, this material, we should move higher on Monday and not look back if this is for real. An inside day would be okay, but not what you want. After an upside reversal, what you want to do is you want to have people that are caught off guard and got short or got hedged and are getting squeezed or feel like they're going to get squeezed.

1:06:35And so they do a lot of buying. You want that. You also want the people like myself who got too light because they were managing risk and now have to go back in. You want that buying power. So this weekend will be very telling how we open up on Monday because we should have, you know, a strong open, you know, a half percent gap up would be fine. Anything more than that, I prefer. We will see. But I would do a lot of work this weekend looking at stocks that have solid earnings history, because I think if this AI thing is going to last longer of the turmoil where people are trying to figure out the whole valuation stuff, and I get that.

1:07:19And if you look back to the 90s, there were times where certain themes of stocks that were high octane just needed to base build. But then the rest of the market just kind of took the baton for a while. So I look for things like the ISRGs or the Lilies, which I have positions in, or the Amgens, which I have a position in, or things like the XLV, you know, if you want to go just more broad-based and kind of look for new merchandise. It's fine going back and, you know, some of the leaders had upside reversals today, you know, to give those a shot. But I think going in and having at least something in that other space that hasn't been participating like the health care.

1:08:06And then, like we talked about several times, the defense area looks like it has the most good merchandise to go with. And, yeah, and just stick, you know, just stick to your rules because we this could have just been a little blip, you know, a fake out, you know, support around the 50 day and just roll next week. So you've got to, I mean, sometimes the market just wants to just frustrate you to the most possible way. And that's what would happen would be like a gap down underneath today's low that turns up like that would be the head fake of all head fakes. So, well, one thing and not to not to get on a tangent here, but one thing I just did want to bring up that's worth mentioning, because you talked about how, hey, some of these new names, some rotation, you might have to accept some lower relative strength in that term.

1:09:00And when you look at these numbers like this is a 64 and, you know, ISRG was actually, you know, even lower. You know, last month it was 14. A week ago was 50. But you're seeing a very strong three month RS rating. Same thing with Lilly. Lilly had, as David Ryan pointed out, it had some really poor, you know, relative strength recently and, you know, came, you know, came shooting up. You brought up Apple as a classic case of a really poor relative strength rating in 2004, just as it was forming this perfect cup with handle breaks out. And, you know, that's that's that's the story. I mean, it was it started as a low relative strength simply because in 2004, it hadn't participated in the big rally of 2003.

1:09:50And so that's that's what depressed its relative strength. So when the rotation happened, though, it was it was all all guns a blazing. So just something to keep in mind as you're doing your research this this weekend. That's an important point that you brought up. So whatever instrument you're using, whether it's an indicator, let's say you're using Bollinger Bands for the first time, you really want to know the ins and outs of how that works. Or the Webby RSI or anything, a MACD, any new instrument, you want to really understand its strengths and weaknesses in the unique edge cases. So you just brought up a great edge case of the Apple with the low RS.

1:10:31I see so many people who only look at stocks with an 80 or 90 RS or higher. That's silly. Don't do that. That's crazy talk. What you want to do is you look at, focus on those, but look at everything and put it in context. And if you're searching for the style of stocks that I'm talking about, they are going to have lower RS numbers. I don't care what it is. You know, they could be, I don't care what the number is. You know, look at the chart, look at the earnings. I would focus on ones that have true earnings and sales growth. Acceleration would be, you know, a plus, a huge plus. And do the screening that way.

1:11:12But also make sure, you know, they've got to be above their 50-day and above their 200-day. Like, those are some bare minimums. I would use that as your thing and not even use the RS for the screening for this weekend. And I do have a song for the week. Do you have a song? Well, I will just say, based on the comments, the song that everyone's coming up with is Stayin' Alive by the Bee Gees, which I know is— I actually dig the Bee Gees, man. Okay. I wasn't sure how you were going to feel about that. But, yeah, I could go with that. That's, I think, a good choice. So I'm going to defer to the YouTube commenters on that one.

1:11:47What do you got? Well, the first time I heard John Mayer Trio live, I'd never heard of them. And he started playing this song called Vultures, which is one of my favorite songs of his. And I was like, what is he doing a Bee Gees song for? It sounds very Bee Gees. And I actually dig the Bee Gees. So I'm now a new massive fan of Miles Kennedy. I did get to see him twice over this last week. He was opening up for Mammoth. And Joe Fami, a good friend of mine, allowed us to go backstage. And I got to talk to him for a few minutes. He's actually a stock trader or investor. Oh, how funny. Yeah, I was so blown away with his knowledge.

1:12:31And yeah, and such a nice guy. Anyways, his new album, Art of Letting Go, that is the title track from it. And the Art of Letting Go is the song of the week for me. And that means letting go of the mistakes that you made over the last, For me, the last month and a half of my style just not working with this particular environment. And kind of like the Ted Lasso thing with the goldfish of just have a short memory. Learn from whatever mistakes you made. If you made mistakes, sometimes it's just your style doesn't mesh with an environment. And just forget about it and just let it go. The Art of Let It Go by Miles Kennedy.

1:13:17Great song, great album. Well, I think I will put that on my list. So very good. Thank you so much, Webby, for all of the information. Thank you, YouTube folks. And thank you to my UCLA crew who is already coming in town from Washington, D.C., Santa Cruz, Denver, and all the folks that are making that trip. Can't wait to see you guys soon. So take care, everybody. Have a great weekend. We'll see you next week. Take care.

1:14:13Thank you. before spend happens and closes your books in minutes. So your finance team stops managing tools and starts driving the business. Learn more at brecks.com slash AF.