Positive Market Shift, But Watch For This; Amazon, Alphabet, CrowdStrike In Focus

27:18I was so scared when I saw JAWS, man. I didn't want to take a bath or a shower or get in a pool or anything, but I'm sorry. Why do you get me on these tangents, Allie? We've got a show you do. This is serious business, man.

27:32Mike Webster:So serious. Well, you know what's seriously interesting here is the CIBR Cybersecurity ETF. We've been keeping a very close watch on this since the early May timeframe. This has, and even more recently, as a lot of the chip leadership has come under pressure, we've been, I would say, pretty impressed by this subset in software as a tech growth area that has been holding up pretty well. Has it been tricky over the last couple of months? Yes. But taking that step back where it's positioned now is pretty interesting. Yeah. So this is kind of a sweet spot, right? Because it has the growth potential, maybe not as the DRAM space, but it still has the growth potential with the whole AI and build out and everything to have a really large move.

28:31Let's go to the weekly just to kind of see that kind of a bigger stance. And I toggle back and forth between this one as well as HAC. You know, we could stick on this one. And they're very, very similar, a little bit different differences here and there. But this is still very early on in a move. And with the same scaling that you've got on there, let's go back to Micron, which whether this one comes back or not or is done, no one can say that this hasn't had a large move. It's had a massive move. Same thing with the Sandisk and any of the other ones in this space. whereas you look at go back to the CIBR and go wow this is hasn't been a dog but it hasn't really participated for a while it was it was being a dog and that was because some of the stuff like let's pull up IGV which is a broader based um software and that is you know that that one was terrible there was a few trades in there like swing trades but it's really been terrible just kind of the mix of what's in there.

29:38So the CIBR is one, and let's go back to the CIBR on a daily. And this is where I think you can be searching for some merchandise because it had a breakout failure out of a mini cup or flat base, whatever you want to call it, but then got support at a rising 50 day, exactly where you would want it to get support. And then it lifted today and closed near the highs versus what we saw with the DRAMs of the world. So this is telling you where the money is currently flowing and also where it got support. So when the market was falling apart on Thursday or Wednesday, this one held up relatively well considering the carnage that was out there.

30:22In fact, let's pull up the cues for a second, just as a contrast. I mean, look at what was happening there. So in the general same space, meaning tech, that one was just falling apart, couldn't catch a bid to save its life. And then you've got this. So that's relative strength. And it's kind of like what we were talking about with Charles Schwab in 98. It has a higher low than before. And it's not picture perfect, but it's in the spirit of which things have held up better. And it's a technique that I borrowed from Bill. He didn't use it very often, but I started using it a lot where he would point to two different levels on a chart.

31:09We used it a lot in 09. That helped. But it was a tool that he would just take out of his toolbox every once in a while, just kind of like a shakeout plus three that we're going to talk about in a little bit. Not something he would use on a regular basis. Most of the time, he would just rely on the RS line. But Schwab and AOL were different. Yeah.

31:30Mike Webster:So in addition to looking at how either a stock or an ETF performed on Wednesday, for example, kind of taking that step back and looking at what recently undercut the early June lows versus what's holding up better versus its early June lows. Exactly. Okay. Next on the list, let's take a look. You mentioned ShakeOut Plus 3, so let's go there. Yeah, why not? How's that sound? Okay, let's go to Google Parent Alphabet. I'll remove some of my older markups. Today, up 6.7%. We had this huge gap down on earnings not too long ago here, Webby, but the stock making a stand and getting above some notable levels.

32:16Yeah, so I wanted to point, we talked about this on IBD Live this morning, which those who know or watch it, I'm back on my normal schedule at Monday, Wednesdays and Fridays until further notice. I was down to one week because of some projects, but now I'm back on the Monday, Wednesday, Friday. It's a very enjoyable show on Tuesdays and Thursdays when you don't have to hear me babble. So with this one, we were talking about that tool that you take out of the toolbox every once in a while. It's that odd-shaped hex wrench that you got, the left-handed monkey wrench, whatever, in there that you don't use very often.

32:55Like cups and handles are your hammers and flat bases are your screwdrivers, so to speak. So some people would be looking at this and going, oh, I want to short it. I totally see that. And that's actually a good thing because it's at a level that coming up against a declining 50-day, that's a classic place where folks like to short if it fails there, especially if it just goes up a little bit and fails there but doesn't quite get up to the 375.27. So a continued of lower highs. So you want to be careful about that. But how would Bill get into this if he wanted to? This is a tool he'd only use if he really loved the fundamentals of a stock.

33:37It wouldn't be for a run-of-the-mill stock. So let's go over the weekly and see how terrible that looks on a weekly. Like that base, if you do a week-by-week base analysis on there, just total junk, total trash. So again, this is a concept for something that if he saw those earnings, assuming those earnings are right at that 294 coming up from a 22 to 35, a little deceleration to 31, then to 82, to 294. Those are massive numbers, and you do have a general pickup on the sales as well. So those are really, really big numbers. Maybe that's why I was holding up so much and was baked in there. But if he was trying to get in here, this is how we would do it.

34:23So let's go to the daily and walk through a ShakeOut Plus 3. ShakeOut Plus 3 is something that he got from Livermore, Jesse Livermore. And it was his interpretation of Jesse Livermore's work. The way Phil interpreted it was if you're in a base building period and you hit a low, In this case, the 330-20 where she marked, that then becomes an important line in the sand. If you penetrate it on the downside, which it did there on the gap, you don't buy it there, and you don't buy it when it gets back up to that number. But if it gets back up to that low plus three points, then you would buy it there with the shakeout plus three rule.

35:01The concept is it was basing something, forced it out of that base, but it was kind of like an oops, oh, let me get back up into this trend and move higher. And that's a technique that he would use every couple years or so, not very often. So he would do it on$30 to$60 stocks. And occasionally he'd say, oh, well, this is a$15 stock, so I'm going to drop it down to$1.50 or it's a$100 stock, so I'm going to make an adjustment. And when you're OCD and on the spectrum, that doesn't fly. It's got to be black or white for folks like me. So it is, I thought about that for a long time. I'm like, well, that makes no sense.

35:37I'm going to change that to a percentage. Three bucks on a$30 stock is 10 % and on a$60 stock is 5%. So I said, let's just use those. Five to 10 % on top of that low. This is very simple. Your base building, if you hit a low, you bounce up from there. You undercut that low. if you move up from that original low, the 330 plus 5 to 10%, that is a buy point, a shakeout plus three modified. So I did the math this morning. Hopefully I did the math right. It was on air. 346.71 was 5 % and 363, can't read my own writing and change, was 10%. So you don't just go and buy it through that level because this is out of thin air.

36:265 to 10 % is out of thin air, just kind of like three bucks was out of thin air. So you look for an area on the chart where it's going through some sort of resistance that matches up with those. So the highs from two days ago, that pretty much matched up with that. So that's where you could have been buying this. Then obviously you never want your stop loss to be more than 7%. In this case, I would put it back down to the high of that day there, which was essentially the low of today for your trade. And could the shorts come in here and pound it? Absolutely. It's Google. So it's probably going to happen on a slower scale, but that's how you would get into something like this.

37:11If you wanted to get into it before a traditional area, like a traditional area is really going to be more like 400 or so, because it's not really a double bottom. The 375-27 would be your pivot if you're looking at it as a double bottom, but that would be a stretch.

37:31Mike Webster:And maybe one day when we're talking about these shakeout patterns, we will just immediately say shakeout plus 5 % to 10%. You know I'm just messing with you. But instead of the whole Livermore backstory back in your day. Well, when I was a kid, I used to go to school. And so if you want more on this concept, on my Webby 5150 YouTube channel, I believe it was number 38 was my ShakeOut Plus 3. So if I didn't do it long enough and you want two hours on the subject. Yeah. Give us more. Give us more. Fusion powers the sun and stars. General Fusion is working to bring the zero-carbon abundant energy source to Earth.

38:17Mike Webster:As global electricity demand surges, Fusion has the potential to deliver clean, scalable power for a growing world. Proudly NASDAQ listed, General Fusion is the first publicly traded pure-play fusion energy company in the world. With its magnetized target fusion technology and operational demonstration machine, General Fusion is advancing toward commercialization, targeting a first-of-a-kind fusion plant around 2035. Learn more at GeneralFusion.com. All right, good stuff. Okay, so next we have to talk about another mega cap name, and that's Amazon. What an impressive reaction to earnings in Friday's regular session.

38:52Mike Webster:The stock up over 15%, heavy volume, really making a comeback here, Webby. The numbers were fantastic. Really impressive to see here as well. triple digit bottom line growth, quite the acceleration for a couple of quarters in a row here now. Also, top line growth accelerated up 20%. So this stock coming roaring back. And this closed well today, too. So I know that was something that you wanted to see is, okay, how does this stock close today? And how does it act from here, a potential tell for the market? Yeah, I bought this probably in the last half an hour of the day. I wanted to buy it at the open, but we've been dealing with such chop.

39:39I just didn't want to take that risk. We didn't put it on Swing Trader just because the stop on it would have had to have been so wide from where we put it on that a 3 % to 4 % stop, we could have easily gotten chopped up in there. So we'll be watching it to see if it tightens up and gives another entry. But I'm looking at this as a double bottom in spirit, where your first bottom was a 225.55, and then the second bottom was this week. I don't think it quite got down there, but the whole concept of the double bottom is something scary on that second leg. yes it could have gone lower didn't quite get it but it's in the the spirit of it as far as i'm concerned and then you have this big news with with earnings and it's something you can understand so the um bezos really i know he's not like running things anymore but did such a great job with this company setting it up for the long term of he always had a mission of just looking out years and years and years, not quarters.

40:44And so it always threw Wall Street off. But every once in a while, when they want to turn their dials to just really kind of crank up the EPS, they can. And look at this, 575, 242. Those are huge. That's huge acceleration. And given enough time, stocks follow their earnings. So this should move higher. It doesn't mean that it'll do it without wiggling me out, but it should move higher given how it closed in the tape that we've had recently. And the other thing is, it's kind of the sweet spot of you get boxes multiple times a week. I get boxes multiple times a week from Amazon. I've got Amazon products all over the house and the Lexas of the world and everything.

41:31And they do great work as far as I'm concerned. But then they have the AWS, which we use at work. The programmers use at work, and I've used it indirectly for years. So they're benefiting from that side, the AI that way, but also from the retail side of things. So it's something that you can understand. let's go to the monthly chart for a second. And something that really has a lot of potential. I mean, this has been a monster for a long period of time, but you can see times where it just kind of just the RS line doesn't see a lot of white space in between the RS line and its moving averages. When you get that white space, that's when it's truly leading.

42:15And so it hasn't led for a long time, but it has had times where it really leads the market and times where it does this thing where these weird double bottoms, if you go through its history, Netflix and Amazon both had a lot of these kind of weird double bottoms, typically to break out on an earnings announcement. So it's got a lot going for it. We'll see if most likely gets stopped out of the trade. So what to expect from it? What would be normal and natural is on Monday to kind of have an inside day. What I'd like for it to do is to go through 280, but I always just kind of look at the negative side first.

42:56The negative side would be an inside day and it could being up as much as it was up today. It could just end up stopping me out, hoping that it doesn't take out today's low, you know, because then if it does that, then you don't know how much lower it would end up getting, but if it does kick me out of this trade, I'll be looking for an upside reversal if it drifts down to buy it off of there. Now, if it doesn't, to make it a meaningful position, if it can just go in tight here for a week or not even that much and give you something to trade against, yeah, some tight action in there to give you a tighter stop, that would be ideal.

43:39at that point, I'd probably exit it in my personal account and buy it or put it on Swing Trader and then buy it back because we can't put things on Swing Trader if we own it. But I think this is probably the best looking setup out there right now. But let's go to Dell because before I'd left on vacation, this was the one that was looking the best. And I would say that again, given the same information, it was your best looking stock at the time out there and it didn't end up working out. So just because you think something is the best one out there, if it doesn't end up working out, it tells you something about the market.

44:15When that one failed, it was giving us a lot of information and the market did end up doing what it said. The market ended up going down because when the best stock can't work out, you've got problems. Good thing with Amazon is the earnings are behind it, so that risk is off the table. So I think we have one more stock.

44:37Mike Webster:We do, and then we will get to Webby's charts. So we already looked at the cybersecurity ETF. Here's a look at one of the individual names in the cyberspace, and that is CrowdStrike. Shares were up 3 % today. A little tricky over the last couple of months. Some swing trade possibilities in here. The recent slide did send it down to the 50-day line. It is bouncing here. Webby, what's your take? Yeah, yesterday would have been a better buy point, you know, with the upside reversal going through the 50-day, but it didn't quite take out the day before as high. So you could have bought some yesterday and added to it today as it was going through there and adding some more as it's going through the 21-day.

45:23So it's a little bit out of there, but if you use the 50-day as your stop on this. I think it's viable. I'm not a huge fan of the constant selling on down to the 50-day, but that was happening all around the world or in this entire space. So I would really just rather go with a HAC or a CIBR, but instead of this particular one, because if this works, The whole sector is probably, you know, you've got Pan W, which is the basic same look to it. So there's a lot in this space that it's its first pullback to the 50-day and bill it off and say that that's kind of a gift that you want to take advantage of.

46:13Exactly. Just don't look at it in its mouth.

46:16Mike Webster:Yeah. And I also do like the relative strength line. You do have that expansion above the moving averages. And I think what makes this stand out versus Palo Alto right now would be the fundamentals, right? So we have great acceleration, solid top line growth, most recent quarter up 26%, earnings up 51%. So we like that as well, in addition to that support at a rising 10-week. Yeah, and you had some earnings come out in the group, like the FTNT had earnings. It was kind of weird action there. The Okta is trying to find support at its 50-day, but it's a little wild. So it's not the crowd strike isn't a lone wolf.

47:02And that's what we don't want to be trading the lone wolf. We want to be either buying the sector or through a hack or CIBR or a similar. A bug, I think, is I haven't looked at it in a while. But anyway, the sector ETF or just going for the best stock. That's what Bill would say. Find the best stock in a group and buy that one. Don't buy the number two or the number three. And so there's just different approaches. So, yeah, I might split the difference and buy a CIBR as well as an equal size position in the CrowdStrike. We'll see how next week plays out.

47:40Mike Webster:All right. Sounds good. Over to you, Webby, in your charts. All right. Let's see if these work. See if you remember how to do this. I know, right? It's been so long. Just kidding. Can you see it? Okay. So let me go over to, we're going to do our Bob Weir, take a step back and look at the weekly candles. Now, nothing is foolproof. This looks like a freaking great candle, right, Allie? Yeah. Right. So, but this one over here looked like a great candle too, but it didn't end up working out. So nothing is foolproof, but you just deal with the instruments you have and the knowledge you have at the time and trade it accordingly.

48:21So why is this so good? You've got this tiny little, and I'll blow this up a little bit more. You've got this tiny little body there that's blue, meaning that you closed a little bit higher than the open. And you traded all the way down here, undercutting the lows of last week, which had undercut the lows of the prior week. So you have this massive shakeout and then closing up. But your highs, the expectation based off of this chart alone is that you move higher next week. But we do the mosaic and we'll look at all of these things. Same thing with the NASDAQ. This looks great from this lens. You've got the very similar candle that we had on SPY.

49:02It looks like it wants to move higher. Now let's move over to the regressions. This is something that's a regression on the NASDAQ. This one died. This regression line died over here. So now we're waiting for a new one. Same thing with Spy. We're waiting for a new one. And next week, I'll do something on the RSP. In fact, let me see. What was the date? Here, let's just do this. Let's do this for now. I'm going to just do it on the fly. Do it on the fly and we'll see. We'll at least do, where are my regression lines? Okay. So we're going to just, we'll pick it from here and we'll just go out. I'm not doing the exact 50 days, but I'm doing, you know, rough, broad strokes to see this.

49:50Mike Webster:In the spirit of. In the spirit of doing things right. So this is, and you can see it's pretty much in that channel versus like, let's go over to Spy and say that, let's say we were to put one on over here. Now it's not enough time, but if we were to use this low or let's even use this low over here and did it to here, we're in a downtrend. downtrend is sideways. So it's just something that a technique that I like to use that just kind of helps me kind of see the trends. And am I really seeing it the way, am I seeing it the way I want to see it or am I seeing it reality? And this is just how the math works out.

50:33Okay. So we're going to move on to the next thing. This is our 50 % retracement. And this is, we're just using the highs and lows from June. And we're back in the northern hemisphere. So that is a good thing as far as this particular indicator. And let's look at the NASDAQ. We're still in the lower hemisphere. And I changed this and I moved it down to this low. But let's do both of them on there. Let's see. Let's do it the old way with this line. So even if we were using the old high and low, this high and this low here, we're still in the southern hemisphere. So that's something that we need to work on or it needs to work on.

51:17Now we've got SPY with our updated lines on here. And there I had a lot more on here and I tried to remove a bunch just to not clutter it up. So let's just kind of get into the ones that are the most important. This line here, actually, you know, We could bring it down to here. The original one was with this low over here from April. But at this point, since we made a stand here, you know, I would say this low becomes very important. Then the same thing with the low here.

51:50Mike Webster:The Wednesday low for our podcast listeners. There you go. And this thing right here that I'm pointing to, Allie, is really important. You've got to see it. That right there. Yeah, that right there, that thing. so then the last one is the 702 which is our final line in the sand here um and uh that oops was going the wrong way let's back out a little oh no we've got one even further this their final final line in the sand we won't be in the market down there 67146 which is the low from uh the the follow-through day back in april but really if you were to come underneath this uh level of the 702.28, which is the low from mid-April, like April 21st, coinciding with your 200-day, we'd be in a world of pain, something we would rather not be in.

52:42So let's look at the NASDAQ composite. So on here, the green lines are lines that we want to get through. And again, there's a million of them on here. You can just pick and choose whichever ones you want. This one, I left the May 19th low to get through, which is the$25 ,701. That's our first level that we want to be able to close above, not just get above. And then for our audio listeners who should really be watching, but it's okay. I understand you got to drive sometimes. So the low from this week ends up being very important. And of course, the low from the follow through day, same as the S &P.

53:26Now let's go to my really cool, what did I call it? The Webinachi. Thanks, Julie, for that name out in Hawaii. So this is very simple. And I have a webbing rambles on on this. I don't remember what number it is that explains how to use this if you want more details. But it's essentially the white line is our current day action. That's just a one day line on there. and the other ones are Fibonacci moving averages. And they just, you wanna see them stacked properly. And so I just built this simple indicator down here that just counts how many of the slow moving or the shorter term moving averages are above the longer term moving averages.

54:07So think of it this way. You've got a three day, a five day and an eight day and a bunch of other ones in there. If the three day is above the five day, you get one point. If the five day is above the eight, you get a point and so on. So those tallies them up. It maxes out at 45. And so that's this blue line here. So we're looking at the trend of that. So if we've turned back up, we're not at 45 yet, but that's fine. We're back going up in a really nice way. And if this continues, you'll get them stacked up nicely like we had in the power trend. We'll just toggle over to the RSP for a second. And you can see this is what you want it to look like, where it's still pegged at that 45, you know, dip down for a little bit, but you're still right up there.

54:55Let's go over to the NASDAQ. So quite different here. It's got a lot more work to go. It's currently...

55:03Mike Webster:It's seeing RSP. There we go. Okay. So with this one, it's still down there at 24. forward. It's got a long way to go, but at least it's moving in the right direction. Now we're going to toggle over to your favorite one. So interpret this for me. What are we looking at? We are looking at the SPY Daily with the 21 only. They keep a simple chart and the S &P is back above of the 21-day. I like seeing this. So it's a step in the right direction of our trend change checklist. We also are breaking a downtrend. I mean, I know that's looking at the price versus the 21-day moving average. But I know you said into the end of the session, you were putting on a position.

55:58Mike Webster:I as well, I put on a little bit of a 2X S &P ETF because I like those moves back above the 50-day, and I think it's a great way to manage risk. I think that's one of the great—something you use on individual stocks as well, and I think you do a great job with that. Was it ANF was your big one that you were buying through the 50-day the first time? No, I wasn't buying that one through the 50-day. I'll have to—Palantir was one that I bought like that. Yeah, you should do a next time you go on to Justin's podcast. You should talk about that because that's a great technique that you use. Bill would have shot you for it.

56:41I know that for a fact, but it's OK. We are going to because I use it now, too, because he can't shoot me. OK, so let's go to we miss him daily. That was just a joke. Didn't come out the right way. So now here's the NASDAQ. So what do you think about this one with the 21-day?

57:04Mike Webster:Still need to conquer it. Still need to conquer it. So I think that that's very important. And we did have a period where we couldn't hold above it and find support consistently. You know, we had a lot of that chop. So I'd also like to see that 21-day line start rising, get back in an uptrend. So it's super important to see that next week, that 21-day. Cool. So that gets us into our next area. Let's see if these charts will work for me.

57:38Okay, let's see. Can you see my WebE RSI? I can. Can you explain to them what the WebE RSI is since it'll take me a half an hour? Yeah.

57:47Mike Webster:So we are looking at, well, the blue would be the low versus the 21-day expressed in ATRs. And then when you're beneath the 21-day, it's the high versus the 21-day expressed in ATRs. Is that correct? Yeah, and I was having to shut some stuff down because I was having some computer problems. So yes, the blue and what you want to see is a wall of blue like we had in the powertrain. And that is just showing you, like you said, in terms of ATRs, how much that low is versus the 21-day. Once you get underneath it, rather than having the first one, I built this indicator, I had it go negative. but it just takes up too much space on the screen.

58:35So I just flipped it up with a different, those are basically negative numbers, but you just flipped it the other way. So that's where it's in the burnt orange color, where it's just, that's what you don't want to see. You don't want to see a wall of that because it means your high is stuck underneath it. The little squiggly line on there, that's something else for another topic for another day, but it's your high versus the 10 day simple, but not something we're talking about today. You can see where the power trend turned off there, where the green shaded area ended. And it's just very nice, calm way that happens sometime.

59:12It typically happens when they're going to turn back on again, if you look throughout history. So that's a good thing, but it's not back on yet. So what do we have right now? We don't even have a brick in the wall. Pink Floyd is not happy with us. We need at least a brick in the wall. And that means our low above the 21-day, And that'll at least get a little blue sliver in there, our first brick in this blue wall that we want. We will see how that pans out. Let's take a look at the NASDAQ. And it was building a little bit of the wrong color wall there. And now we're back down.

59:49Mike Webster:I'm still seeing SPY for some reason. Wow, that is crazy because I've got, do you see it yet? Oh, it's just a delay? Yeah. Do you see the IXIC yet? No, I don't, but maybe. It's showing up on my end. There we go. Now I see it. Wow, it's a real delay. And yes, Musk, if you're listening, you know, I'm going to probably be going back to spectrum. Oh, my God. My upload speeds are killing me. I tried, people. I really tried. Yeah, he's tried everything. But this is the Webby RSI on here. We need to get above the 21 day for this to do anything for us. Next thing we're going to look at, we're going to actually look at the VOO for this one.

1:00:32This is the Bob Marley off high indicator. Do you tell me when you can see it on your end?

1:00:37Mike Webster:I see it, yeah. Okay. So this is a very important one for this environment that we're in. This is critical and is actually a very good thing. What are we looking at? We are looking at the low versus how far off the highs the low has gotten in terms of ATRs. So our first major pullback that we had here that ended in, looks like June 9th, that was down about almost four and a half ATRs off the high. So that kind of set the stage for future pullbacks that you didn't want it to go down more than that. So the next two pullbacks we had were shallower in terms of ATRs and pretty much right in line with each other.

1:01:26So it's telling you it's normal. This pullback on the VOO or S &P is normal and natural and healthy. We'll also look at the RSP, very normal and natural there. But now let's look over at the NASDAQ. Not good. Can you see the NASDAQ? yeah okay so this is exactly what you don't want to see it's kind of like a quicksand in a different way where you hit one low then you hit a lower low then you hit a lower low and there's no you know there's no end in sight until you have a low that's higher so just being frank about it this looks terrible on the nasdaq from this lens but that's also why you know that's why we were looking at so many different charts and we do it in this mosaic thing.

1:02:18We'd look at the one chart in isolation and say, okay, this is that one part of the puzzle, and then look at everything else. Now, unlike what a lot of technical analysts will do and the ones that Bill weren't a fan of, is they would look at a million different indicators based off of a million different things. They would look at VIX, they'd look at put to call, they use stochastics and MACDs and And normal RSIs and why I named my RSI what I did, you know, is kind of for those funny reasons. They would look at all these things and then just confuse you to death because they're all lots of times advanced decline line and this and that and the other thing.

1:02:57And McClellan and not saying any of those in isolation aren't some of them might be relevant. but the problem is they contradict each other because they're measuring different things. Whereas all of these things are measuring the same thing. It's only using the price information, open, high, low, or close or combination of those. That's it, period. No volume, nothing else. So it's just a bunch of different ways of looking at the same data set. And that's what I would suggest people do. You don't have to look at it my way through this, but find your, maybe you really like stochastics. Charles Harris does a great job using stochastics.

1:03:40Maybe that's your thing. Use it, but then I would just use it on that one instrument that you're doing. Don't do it on a bunch of different things. Just do it maybe NASDAQ and S &P. Just keep it simple that way. But I would say, try to just use things like moving averages and RS lines and keep things as as simple as possible. So where does that leave us? We have some good things with the S &P going back. We both have positions in now, both about above the 50-day and above the 21-day. That's our first part of our checklist. We want to see early next week our low to get above the 21-day and close up.

1:04:19Same thing on the 50-day. That would be great. And tell us, okay, we're going to incrementally get back in a little bit deeper. We want to see a follow-through day on the NASDAQ. That's very important for that AI-themed space. But I'll tell you, I did a lot of screening yesterday and today because I'd been away and I had my laptop shut down while I was away. And it was really interesting, especially when you look at it on a daily and a weekly, because I was just on my laptop for a couple months. And so I was only looking at dailies. And when you look at a daily and a weekly together, which is what if you use market surge, that's what I suggest people do have a daily up and then a weekly up and you can just click a little button that links the charts and you can do even more than that.

1:05:03But I would start off with a daily and a weekly and play through the growth to 50 that way. focus in on the earnings line on the weekly charts. And I'm seeing so many stocks that have been pretty much dead as a doornail for a while with maybe a slight upward bias that the earnings line looks great. And when I studied, you know, the 1974, 73, 74 bear market going into 75, that was one of the things that I noticed that you had all these stocks that were just getting killed because of the market, but yet their earnings continued. And then when the market lifted, it allowed those to really do what we call PE expansion.

1:05:43Have a big move is another way of putting it. So there are lots of spaces outside of our normal growth that look good. Restaurants are starting to look interesting. Insurance stocks, there's some of them that look interesting. It's normally just a place to hide. But I'm seeing enough in the insurance as well as banks that look good. And that's probably because of the yield curve and everything. But without getting into that, you just want to look at where is money flowing. A lot of travel stocks and some oil stocks that look good. I don't like trading oil stocks because you could get hit by a tweet.

1:06:21But, you know, you get hit by a tweet with anything. But it's good to know that it's not all just about Sandisk and Micron and those. There's plenty of other stocks to be trading. So I would do a lot of screening or just save yourself time and use. What should people use if they want to save time?

1:06:41Mike Webster:The Growth 250 is pretty great. There you go. The Growth 250. So with that, before we get distracted, Allie, what's going on with Chloe? We need an update. You missed a lot. Has it been like a month? It's been like three Fridays, I think, at least. Yeah. Well, she is just. Is she in college yet? I know. I can't believe how much she has grown. She's 11 months now. And her communication skills are very impressive. Really? Yeah. She knows a lot of words now. A lot of B words, like, you know, sponsored by the letter B. That's something that Justin always says, I feel like. Like if we have stocks that are same letter, but at any rate, so baby was her first word.

1:07:34Mike Webster:Wow. A couple of weeks ago, but she says bye-bye and waves. Oh, wow. So she's also communicating with her hands, but yeah, she has a lot of, I would say a pretty good vocabulary for her age, knows quite a few words, a flashcard of a ball, and she, you know, ball, and, bear and all sorts of blocks. Balloon. She's learning balloon. That's a tough one. But she knows what a balloon, we say, where's the balloon in shul? Oh, cool. We have like a little hot air balloon in her nursery. So, yeah, she, you know, books, that's probably her most said word. She loves reading books. Oh, that's awesome. Now, she's been in the water, right, this summer?

1:08:25Mike Webster:Yeah, she's such a water baby. Oh, awesome. Loves the pool, loves taking baths. So we've had a lot of fun with that. But she's learning baby sign language too. And you said you recommended learning the baby sign language so she can ask for more food. So do you remember this one? No, we haven't done that. We haven't done that one. What is that? It's milk. Yeah, I know that. It's a cracker, I think. What is this, Nana Nana Boo Boo? No, I think it's either father or mother. Oh, is it? Yeah. People are yelling at, no, it's Apple. I don't, I used to know all of them. I used to know all of it. For young parents out there, there was this thing called signing time.

1:09:07I don't know if I sent it to you, but it was someone's so signing times. And it was, we used to have them on DVDs. Those are those things that you put in the computer and taught the kids how to do sign language. It's so helpful. It cuts down on the frustration, you know?

1:09:25Mike Webster:Yeah, and they're so smart. She's picked it up really quickly. So, yeah, but her verbal communication is pretty great. And then you also— Just like her mommy. Aw. Well, you'd also be impressed by—she can sing. She's— Oh, wow. She's singing. She's learned to sing on pitch. And she knows three—parts of three songs. And she can kind of go ahead. Are you teaching her the one that when you were in labor and that great story about that song? No, I need to teach her that one, our wedding song. But no, they're more kid kind of songs. But yeah, part of the lyric is, I adore you. and uh so yeah so she can basically say i adore and i earlier i told her you're adorable and so she started singing the song oh my god that's awesome i love that you're like what she's on pitch this is so crazy so so she must get that from your side of the family right because you and your brothers are all good singers is your hubby a good singer he is the athlete in the brain Yeah.

1:10:45Mike Webster:But he, my, my mom sings to her all day, every day. So we're so lucky. Well, we're all living through you, through you guys, through this show. Every Friday, the highlight of my week is I get to hear the latest. Yeah. Her, her waving and clapping and all the little words are so cute. Yeah. And her little personality is coming out. So it's so fun. Enjoy it. It goes by quickly. It does. It does. I know. Are we all wrapped up on the stock stuff? Or was there anything else that we, I didn't have the Q &A up. I assume we probably answered all the questions. Everyone has gone to sleep now. Yes, I think so.

1:11:29I think that's it for now.

1:11:31Mike Webster:We will be back though. Thank you, Webby. We'll see you next week. Webby and I will be back Monday morning on IBD Live. And the conversation will continue there. investors.com slash IABD live for all the details. So we'll see you there. And then we'll also see you Monday back here after the close.

1:12:04Mike Webster:This show is for informational and educational purposes only, and nothing should be construed as a recommendation to buy, hold, or sell any securities. Any securities and investment strategies discussed may not be suitable for all investors. Make sure to consider consulting with your financial advisor before making investment decisions. Fusion powers the sun and stars. General Fusion is working to bring the zero-carbon abundant energy source to Earth. As global electricity demand surges, Fusion has the potential to deliver clean, scalable power for a growing world. Proudly NASDAQ listed, General Fusion is the first publicly traded pure play fusion energy company in the world.

1:12:39Mike Webster:With its magnetized target fusion technology and operational demonstration machine, General Fusion is advancing toward commercialization, targeting a first-of-a-kind fusion plant around 2035. Learn more at generalfusion.com.