Power Trend Powers Up As Chip Stocks Surge; Nvidia, Micron, Corning In Focus

24:22Mike Webster:I shouldn't want to draw because I have my tool in the date area because we're going to the next one. Here's 9-2 of 82. Okay. So this is about as important as it gets, but it's not like our current market because I wouldn't use this as a precedent for our current market because it was completely different. Let's go out to the weekly here. Sure. Maybe even the monthly. Yeah, let's go to the monthly. Okay. Okay. So this was, and we don't even have it back to 66, but from 66 to 82 was this big sideways chop environment where we didn't go any higher. That's an environment and pull up the, no, no, we'll stick with this.

25:05Let's go back to the daily. I don't want to get us off the rails too much because we've got to, so this was very powerful move off the bottom. That's something to pay attention to, but the position of it was totally different. But also that mindset of people not believing it because from 1966 to 1982, you hadn't made new headway. Like that's a big change. I mean, that's happened, you know, before in history, but none of us were alive for that.

25:38Mike Webster:Let's go to 729 of 83 and I'll zoom and pan a bit. Yeah. So you can see that's where it started over there and how long this one was. And this was a lot more gentle than what we had in 2016 to 2018. Just much more orderly type of trading. And so it would have been easier if you recognized that it was a power trend and your default was to give it a little bit more space. Yeah. Not one single close below the 50-day. Exactly. Yeah. Until the end. Yep. Okay. The next one on our list. The trend is your friend until the end. True statement. I love it. I was going to try to add to that rhyme, but I'm looking at a date to pull up.

26:27Yeah.

26:28Mike Webster:Let's go to four. I don't know who came up with that, but it was a trend is your friend until the end when it bends or something like that. Someone in the comic will know. Okay. So here's another one that we have, and this was after a major, major bear market. let's go out to the weekly on this one just to get a sense for how bad it was. Well, with that scaling, you can't really tell, but it was, this is one of the worst bear markets of all time. Yeah. You can do the, huh, that's a little weird. Okay. It's fine. Let's go back to the daily. But that was one of the, one of the worst out there. You also had, of course, the one that was worse, 1929 to 1932.

27:10and then, of course, 2000 to October of 2002. Yeah, that looks better. It looks like what it felt like. That was a horrible, horrible environment. And you didn't believe it when the market turned because the market was, the world was coming to an end at that point. Bill thought it, I thought it, and anyone who was really clued in, we could have, the financial community could have been changed forever. I mean, we could have gone back to the Stone Ages It was set up for that. But luckily, D.C. and the rest of the world did what they needed to do. And we got out of there. And doesn't mean it's always going to happen, but so far it always has.

27:50So let's go out to the where this ended.

27:53Mike Webster:OK. 2-4 of 2010. 2-4 of 2010. And the official end of the power trend, the 21-day crossing below the 50. Just a reminder, right? Exactly. Yeah. With a few exceptions. Yeah, that was the. Yeah, those are the basic. Yeah. Yeah. So this one was tricky and this one actually very reminiscent of 0304, something that Charles Harris, our good friend, a friend of the show, was able to pick up in real time. And this market traced out very much like the recovery that you had in 0304 with those pullbacks. So if you're going to study this one, I would also go back and study that time frame because they weren't gentle pullbacks.

28:41But once you kind of know what to look for, look at those turns. And really, if you want to get serious about your trading, you could go through each one of these and do a day by day analysis and be honest with yourself and ask yourself, you know, what would you be doing with your accelerator or your brake? You know, just pretend like you're driving in this. Would it be pedal down? Would you be You're slamming the brakes, pulling up the emergency brake. Wear in between along the way. And you'll learn a lot from that. And it's something I do all the time. You learn every time you go through that exercise.

29:16It's like a golfer. Do you know anyone who golfs? Do you like to golf, Allie?

29:21Mike Webster:Yeah. Do you ever go to the driving range? Or do you only play? It's been a minute. Well, if you didn't have a baby, you would be going to the... I only play. Well, a little bit of range time. But yeah. So the driving range is similar to going back historically. It's a thing you have to do so you can go play a round of golf. And that's the way I like to look at it. And, you know, especially because this also came in handy for us in 2023, right? After the 2022 bear market, we saw a lot of similarities as well. Yep. Good point. Okay. So there was the end of that one. pullbacks, buying opportunities there.

30:04Mike Webster:I think we wanted to take a look at two more. Two more. Yep. Okay. Great. So let's go. No, you're good. 429 of 2003. This is a really important one. And this is after the 2002. This one you could study in all sorts of ways. Right now, we're just going to focus on the power trend aspect of it. But we got through the three waves down in there, very classic, just like the 1930s. Then you turned and you're going up. And now at this point, you've got a power trend. Now we didn't know what a power trend was because Charles, Justin, I didn't invent it until 2011. Wish I would have known it back then, but I had other things I was using, but still, this was the beginning of a power trend.

30:51Most people are looking at it going, oh, it's already played out. You've already run up so much. It's got to be done. And so let's go out to the end.

30:59Mike Webster:Okay. So the end of this one is 2-27 of 2004. And again, if you still have in your mind what happened in 09-10, very similar look here of those pullbacks and especially that one right there was very, it was like identical. And then eventually the 21 day has to pull back through the 50. And the end of it kind of is reminiscent of January of 18, where you started growing, going at a faster rate. So if you get one of those, you still play that until it rolls, right? And so exactly right there. Man, you're good. You're really good. I'm not just saying that, man. I try to listen when you speak. It's just unbelievable.

31:49So, yeah, we have one more to look at. And this one's further down the list. So these are all the ones at the top. So this is towards the bottom.

31:58Mike Webster:Okay. So, yeah, we're going to go to 1110 of 99, baby. A prince year. Yeah. I remember where I was listening to that song on New Year's Eve that year. Oh, where were you? I was at my folks' house. I was with my dad. We were camping. Oh, that's wonderful. So I think my sister was at an Eagles concert downtown. And I was like, we were too scared because we were, you know, you can tell I'm a little bit of a worrywart. But we were all wrapped up into like ATMs weren't going to work and all the computers were going to crash. And that's a story for another day. You got to be old to understand that one.

32:41So I'm not saying you're old. You didn't understand it. But, you know, this was really a choppy environment. People don't understand 99 if you didn't trade through it. The first half of it was a lot of chop and slop, very kind of like what happened in October to recently, a lot harder than you would have thought. You had to really kind of be dialed in to be doing well during that because it was if you use. Luckily, I didn't know how to to interpret the market the way I do now because I would have gotten chopped up during that time frame. And when Charles, Justin and I did our market school rules on 1999, they just flat out didn't work for the first half.

33:23We could have made them work, but then we would have been data fitting and we wanted to not data fit because it's the wrong way to do work. But it was a very challenging environment. And Bill actually got very bearish in October or maybe it was in August. But then when this changed in late October, November timeframe, he changed with it in a big way and really was gunning it. And he was mainly in Qualcomm. And that was the monster of that cycle. Let's go out to when this ends. Oh, yeah, perfect. I mean, he was in playing that in a really, really big way. That stock went up, I think, 2 ,200 % that year.

34:06And I think he was up, you know, 400 or 500 percent that year. And so most of the team was in the 300 to 500 percent range. So we can go back to the NASDAQ.

34:19Mike Webster:And a good one to study, because if we're going to put ourselves in the mindset of leaders for today, this would be a good one to study. Perfect one. And maybe someone did a whole episode on their Webby rambles on on this one. Maybe. A whole hour is going over that if you're bored. Okay. So the end of this one for 10 of 2000. So there was ways to recognize in the whole team, we basically sold at the top day. I'm not even kidding. Like Bill didn't tell us what to do. It was just, it wasn't about the market. It was individual sell signals on stock. So if you have the time to go back and look at that, and that was a very kind of like what we were just looking at with the last example, as well as 2018, where you're growing at a certain pace, then you start going faster.

35:14It's like a little mini climax on the averages itself. And then when you get a gap up, you know, coming down like that, that's when you really need to be locking some stuff in. But if you weren't clued in that way, again, even if you just waited to break that 50-day, there was nothing wrong with doing that. Now, we did get back in the market and stuff. It wasn't like we sold it there and didn't buy until 03. I wish that was the case. And there was a lot of chopping around from 2000 to 2002. But still, in real time, we were all 10 of us. You typically had 10 p.m. We all got out. None of us talking to each other.

35:56It was just following the system that he laid out for us and then different observations on that. But I would study all of those because this is the backdrop. I don't think that we're in getting ready for a 2000 to 2002 bubble. Let's go to the monthly chart on the NASDAQ. Because everyone thinks of 1999 like 1929 because they're so similar because of what happened afterwards. But it's really about like the mid-1920s, like 1926 or so to 1929 or even 24 to 29, similar to what was happening in 95 to 99 or to 2000. And that was the whole internet build out. Now, you had the move prior to 95 because it was still a really good environment.

36:48but when everything was changing in such a big way with the internet and back then we didn't know what it was going to turn into now just like we don't know what ai is going to turn into but i can tell you everyone i'm talking to including myself we're using it to become more efficient i mean i'm using it to build build stuff you know indicators and things things that i would have had to use a programmer for now I can do on my own. And that's just in my little niche. So everyone being able to be more productive, what that translates to. Now it's going to translate to a lot of jobs being lost, but those jobs will then turn into new jobs.

37:28And that's what happens if you go back into the time of, you know, the railroads put people out of business, you know, because think of that game changer, then the airlines, same thing. But then with the airlines came new jobs because now all of a sudden you had hotels and restaurants and stuff that built on that. So there are going to be follow-on effects to the AI that are going to help in a big way. And that's why everyone's so crazy about it. And that's why these companies are spending tens and tens of billions of dollars every year of capital expenditures, because it makes sense. They're looking forward.

38:07Now, Now, is it a bubble? Everything's a bubble. But, you know, the tulips lasted a long time. The 20s lasted a long time. The 90s lasted a long time. We don't know when this is going to end. And so you don't you don't worry about the bubble aspect of it until the market starts giving you those signals. So are we in a bubble? Yeah. But we could be in the first inning of a bubble or we could be, you know, midway through. Look at me with all my, you know, analogies, my football analogies I'm using. So good. Um, so anyways, that's what it looked like on a monthly chart. I was there trading during that timeframe.

38:44It was a very special environment. And I remember every day in 99 going home saying, this is crucial. It was a crucial time. And we're back in that crucial time that you need to be studying and doing the homework because, you know, it could really pay off in a big way. Doesn't mean you just buy any old thing. It's not that. You still have to have all your rules of where you're going to buy, but most importantly, where you're going to cut your loss. And that's how I look at everything is where am I going to cut my loss? I know that before I even put on any buys.

39:19Mike Webster:Anything else, Webby, to add about the mindset from this time period that you had? Because for a lot of folks out there who don't know, your gain during this time period, I want to say, was what, well over a thousand percent? 1 ,640%. Now, Bill put it in his book at 1 ,000 because he's a mock, and he had someone verify it for me because he's like, sure, because he was up 400 or 500%. And this wasn't with options or anything. And I was doing it very precisely, very, like I was locked in. And that was just doing it in a very textbook way during that timeframe. And it was really hard. It was a lot of hard work.

40:03I I mean, I did not sleep for all of 99 pretty much. And but it paid off, you know, because then that got me noticed by him. And they made me a PM after after that. And frankly, it should have been a lot bigger. But Bill had changed his tune in the new versions of the book. This book, this fourth edition, which I helped him with, as well as the third edition that in his first two editions, he was focused on small caps. but um during the 90s he switched to large caps and i didn't know that because i wasn't working with him just for him and so i was just still trying to trade by the book in the small cap so i missed the qualcomm i didn't trade qualcomm or dell or any of the big ones because i thought that was against what bill thought so that's a good point like don't um don't concern yourself with what anyone says, what Ali says, what I say, what someone on Twitter says, do your own work and come to your own conclusions.

41:03And if you think it makes sense to trade a certain stock or an ETF a certain way, do the homework, put in the time, backtest it, study it. And if it makes sense, do it. And if it works, do more of it. Say again?

41:18Mike Webster:And manage risk. Yes. It's always about managing risk. Yeah. That's the number one, two, and three. Yeah. So do you finally feel like we're back in this raging bull market? I mean, when you have the chip sector, so I guess forwarding to today, I can go back to the current chart. I mean, when you have the chip sector, let's see, for the week, up some 9 % here, accelerating. And a stock like MaxLinear, for example, up 75 % on the day, 130 % for the week. I mean, worthy of such a move, arguably, with that acceleration of that top and bottom line growth here, Webby. You know, what do you make of this type of moment that we're in?

42:16Mike Webster:Does it feel reminiscent of the late 90s to you? Very much so. And it has, you know, for last year, you know, I've talked about it. It was like maybe longer than the last year that as an AI, once... It was like AI was around, but it was kind of not really. Really just NVIDIA. Yeah. Kind of like, yeah. And then all of a sudden all these players came around and it's like, oh, wow, this is just like, I mean, it didn't take a genius to figure it out. This is just like the internet. Like everyone figured it out. Yeah. But it's been a rocky, it hasn't been a straight line and it has been rocky long way.

42:54But just like we saw, go back and study the 90s from 95 forward. It was rocky long way. You had lots of trouble in 97, trouble in 98, trouble in the first part of 99. And that's what we've also had, too. We had the tariff bear market, and then we had everything else that we were dealing with recently with Iran. But this feels so much like that, and you don't want to get in a negative mindset. But you also, let's go back to the max linear for a second. You don't want to, you watch something like this, and let's say it goes up another 30 bucks on Monday. You don't want to just go and say, oh, I'm going to just chase this and just buy it up here.

43:38Because it goes back to what you were saying, it's managing risk. You can buy things out of position if you can manage your risk. This is not in position. This is something that I would watch because if a stock goes from 20 to 60 in a blink of an eye, well, that might end up turning into a high tide flag. And then there's a certain way that you buy a high tide flag, but you don't just buy this up here like this because anything can happen to it. Let's go to CAR for, I think this is a good example of what can happen. Now, this is different because this is more around a short squeeze versus other stuff that's playing with the whole AI space.

44:17But just go and do a change date to like four or five days ago. and what that looked like. Yeah, perfect. You look at something like that and you're like, oh, wow, you know, this just keeps, is going to keep going up. I'm going to just buy it no matter what. Well, if you're going to buy it, you better have a strategy on how you're going to get out of that. And also if it gets halted or it gaps down on you and now go forward to what ends up happening, you know, that's a brutal action. So I'm not saying people can't trade these with a small account. one of your smaller accounts for fun or something.

44:54But you've got to have, if you're playing this, you got to assume anything that you put in there, in five minutes, you can be down 50%. And I'm not joking, like, because that's happened before with things where when everyone heads for the exit at the same time, you can be down 50 % in five minutes. That can happen and it can get worse from there. So anything that you put in, And even with a stop in place, you want to think that, you know, bad things can happen. They can break through your stop and you could end up having a halt on your hands and you can't get out. So I just don't want people getting hurt.

45:35I also know that people don't want to just sit and trade Johnson & Johnson and Walmart all day long when you're in the middle of a raging bull.

45:44Mike Webster:So as he's getting his internet back up and running, we will continue the show. But I think the important lesson here is you can trade with more aggressive rules, but make sure you are managing your risk accordingly. And I know that Webby also looks at aggressive entry points as well. He's a swing trader for a lot of what he trades. And there, oh, he was there briefly, but then he left. We'll get him back shortly. So, but anyway, we're talking all the time about the entry points, the setups that Webby uses in his trading on IABD Live every week, as well as on this show. So it's a really great reminder of the kind of moment that we're in and we'll be keeping an eye out for a potential high tight flag on max linear, no doubt.

46:42Mike Webster:I'm going to reset to the current day here. All right. So as we're getting Webby back up and running, I'll just quickly go over the other major indexes for the week. We talked about the power out of the NASDAQ and then the S &P 500 as well. Let's take a look at the gain for the week here. It was up about five tenths or six tenths of a percent on the week, but that was after a powerful week last week. And now I think we can go to some other charts. We also talked about SMH and the powerful week for the chips. Not only did you have that strong earnings report from MaxLinear, but you also had Intel out with a strong report.

47:39Mike Webster:That was up 24 % on Friday. And a lot of, hey, good to see you. I'm so sorry. My internet went out. This is the fourth time for today. I'm getting startling tomorrow. I cannot wait. So I'm so sorry. Awesome. I'll just go along. You're good. Well, I was just updating folks on some of the other big earnings movers that we had, including Intel, and also letting them know how every week on IEBD Live, you are talking about the setups and the entry points that you are looking for. because if we are in this more aggressive environment, I know a lot of people out there want to know, okay, well, what's Webby trading or what are some of the shorter consolidations or aggressive entry points in the leaders that he's looking for?

48:30Mike Webster:So in addition to this show, IABD Live is also a place where people can get an inside look at what you're trading and how you're trading. I would say now's the most important time to be, if you're not, and I'm not trying to look, I'm not getting paid anything extra if you guys sign up. I think now's the most important time to be watching IBD Live. Like every day until this bull market is run its course. I mean, because we've got such a great team of people and all with different approaches to things. And that's what you learn is like, oh, you see Scott does it this way. Chris does it this way.

49:08Allie does it because you talk about your trading. You do it this way. Justin does it another way. every Friday we have a special guest David Ryan's on every Tuesday um you know so you get four different people every day and we're talking in real time and you know I'll just I call it the way I see it I told everyone on air that I was you know up to my eyeballs in stock I was on margin before the follow-through day you know and I'll walk through that and and and why I was it was very risky, but I thought it was a perfect setup. So that was, you know, on massive margin before the follow through day, something I don't think I've ever done in my life, but it was like, this was a gift that I couldn't pass up.

49:51I mean, it was, it was a perfect setup. So we talk about that every single day, what we're doing. Are we always right? No, of course not. But it is, it gives you a different, four different lenses to look through each day. And you can always, If you can't watch it during the day, let's say you've got a job during the day, you can still get it and then watch it later. And the added benefit is you can watch it at like one and a half times speed or two times speed, you know, and just slow it down when you need to.

50:24Mike Webster:This podcast is brought to you by MassMutual. For 175 years, MassMutual has been there for policy owners, financial professionals, and communities through economic shifts and societal change. In a world that changes fast, strength and stability still matter, especially when it comes to helping people secure their future and protect the ones they love. Learn more at MassMutual.com. That's MassMutual.com. Okay, so do you have any just a quick comment on the chips before we take a look at some individual stocks? You still have to be careful with them. I do think, you know, use an SMH or SOXX, which I'm trading using both of those.

51:10They can help out because you don't know how the news flow is going to be and which one is going to be the one that ends up working out. So going now you can't buy these up here because it's just so stretched. But if this can go sideways for a little bit and give you some sort of entry point, that would be ideal. But don't chase something that's going parabolic because then if you do, let's say there's some negative news that comes out and this comes into like 425 or 420 or even lower that, you know, you don't want to have bought it 461.60 and then have that happen. And if you are going to chase things, if you just can't help yourself, have a game plan.

51:56Say, OK, if I'm going to build a 10 percent position in socks, even way up here, OK, I'm going to do half a percent a day for the next X number of days. So you're slowly, you know, dollar cost averaging in. That's not something Bill would do. That's not something I'm saying that I would advise to do. But if it's either that or you just buy the whole thing up here because you can't help it, I'd rather slowly get in. But yeah, ideally it's getting in earlier. And we got in earlier and I kept on waiting for a spot to increase the position on Swing Trader. And there just wasn't an opportune time. And so now it's only a half position.

52:37I'm glad it's a half because we got chopped up a lot from October until recently. But, you know, it looks good. But I would wait for sideways if you can, if you can be patient enough. Okay.

52:51Mike Webster:Well, this is a great segue to the first stock that we want to highlight. And hopefully quickly, because I think the most important part is the upcoming section with your charts, Webby, and talking about the Webby RSI. So NVIDIA, the big daddy in the chip space and the AI theme. We talked about it clearing a trend line. And with Jim Ropel on our monthly market report, he has pretty consistently been saying that something that he learned from one of his mentors, I honestly can't remember if it was Bill or someone else, but as goes whoever, you know, that big name is in the market, so goes the market.

53:33Mike Webster:So he had been looking at NVIDIA as sort of a market signal. If NVIDIA is acting well, the odds are the overall market's acting well. And now NVIDIA here close to all-time high territory after some chop. So it's been picking up its pace in recent weeks and showing that outperformance. And today up 4.3%. So perhaps an add-on entry today or a time to initiate a new position. Yeah, I think today is a place where you could initiate a position using today's low or yesterday's low as the stop there. Now, is this the hottest one? Of course not. The hottest ones are up and out of there, like the one we were looking at earlier that was a crazy move.

54:21So you're not expecting that type of move out of this, but still being able to participate in the group, buying something that actually has an exit strategy in there. So if this were to fail and comes underneath today's low or yesterday's low, you back away from the trade and you can always buy it back later. So sometimes it's not buying the best one, but it's buying what you can buy. Now, you're better off than the leader, but if you don't have that, then you can go to something like this. This is a very, you know, quality name, obviously very liquid.

54:54Mike Webster:Yes. Well said. The whole AI ecosystem looking great right now. And here's a look at Micron, ticker MU, in the memory space into new high territory this week. It was kind of a weird one. The breakout failing after that earnings reaction, despite a solid report here. But Ken and I were talking about this on the SMT video yesterday. We have a lot more memory peers with earnings coming up next week. I think potentially the difference is going to be we're in a different market now than we were when Micron reported. So we'll have to see how those stocks react to their earnings next week. But a second chance at this stock, Webby.

55:41Mike Webster:I know you were getting in the other day. Yeah. So I was out. I was in. I was out. And then I got back in. And I talked about it live on IBD Live because I was in it and then I was selling it as it was up on that day on Wednesday. And I was like, I've just never seen this before in our models. Meaning you had a nice little flat base or, you know, consolidation there broke out and failed. And you had this V-shaped cup that we have, a little V-shaped cup with handle. V-shapes are problematic. and just historically, but there are ones that end up working. If you want to know one that is kind of, we don't have to go there because we're so late on time, but MicroStrategy back in 98 or 99 at a V-shaped cup that I passed.

56:32MicroStrategy? MicroStrategy, yeah. Go there. Let's go. Come on.

56:37Mike Webster:Okay. You know, you got to do it. MicroStrategy, go to 99. All right. Because I thought it was a genius with this one. go out to the yeah no go out to the end of 99 oh okay

56:56yeah that one now go to that breakout because now we see what ends up happening but go down to the breakout no no no no no no down to 20 bucks

57:04Mike Webster:no the cup with handle yeah that cup with handle it doesn't look this is why you've got to do a change date so go to the change date when it's breaking out whatever date that was in September yeah And so I recognized that in real time. And I said, oh, I remember what Bill said in his book. V-shaped cups with handles are prone to failure, but they're not all going to fail. So I let that one go and I watched it go up every day and it ate at my soul. It still eats at my soul because of that move that it had. So it always made me remember that, you know what, just one flaw in a base is okay. You just don't want to have a bunch of flaws.

57:45That's why it's the mosaic of it. So let's go back to Micron. That's what made me switch in real time. I'd sold it. And then I was remembering MicroStrategy and how it haunted me. I said, you know what? I'm going to give this a shot because I have an exit on there. I was going to be using the low of that day as my stop. So I bought it and I actually bought a lot more of it because that was a technique that Bill taught me back in 2002 was that if you get shaken out of a position and then you go back in, be on the offense, so build a bigger position. He would just say five or 10 % bigger, but I went significantly bigger because I looked at it and said, this is the leading group, leading space, one of the leading stocks in there, and it's giving me an entry point.

58:30And well, I don't know, it might not work out. It could fail next week when the people don't like their earnings on the other stocks in the group, but it's just a reminder to be flexible. And that's something I learned from Bill is just, you know, you change your mind, it's totally fine.

58:46Mike Webster:Yep. And let's go to ticker GLW really quickly. This is Corning, full disclosure. I do own a position and we have earnings next week. I was buying with that gap up on the follow through day. I really liked the relative strength line and the nice fundamentals here. And I think this week, you know, maybe using a trend line, but especially today felt like an add on opportunity to me, Webby. I totally agree. I have a position in it as well. The problem is the earnings of next week. So I might still own some, even though I'm not going to have a big cushion in there, but I'll just position size it. I'll bring it down to being able to withstand a gap down to the 50-day because if it doesn't work out, that's probably the first stop, which is your red line.

59:35there is a long way down. But in this environment right now, you are being able to get away with some holding into earnings until you've not, you know, but so I would just size it accordingly. But it there's not a whole lot of things that are near buy points. And this is one of them.

59:56Mike Webster:Yeah. Well said. OK, are you ready? Yes. I'll try to be fast because I know we're late and I'm I'm sorry about my internet connection, but I'm not sure if I'm allowed to say that the provider that I'm not happy with. But it rhymes with something. Well, I'm not going to say what it rhymes with. Okay. So it's Spectrum, and I don't like them. So anyways, because down four times in one day, it's almost every day. Look, now we're going to do the Bob Weir take a step back, look at a weekly candle, and let it tell us something. What is our expectation? Well, our expectation, we're in this powerful move.

1:00:36We've cooled off this week. And why do I say we've cooled off? Just look at the body that we had this week versus last week and the week before and the week before. A lot smaller. What does that tell you? That tells you that the market is more at equilibrium. You've had this massive run-up. So it's in the vein of a high tide flag, not a high tide flag, but in that same spirit where you have a rapid advance and then holding in tight. So it's a huge win. If we can just stay above 700 and stay in this range, even if we were to go sideways for several weeks, that would be extremely healthy. I don't know if that's going to happen.

1:01:12But looking at this, it's telling us that there's, from this particular chart, nothing to worry about because it's a perfect candle with a long bottom wick. Now, we don't know how the news flow is going to be next week because there's tons of earnings that could change things. But we just look at each one in isolation. We let it tell us a picture. Let's go to the same thing on the NASA composite. This one actually looks a little bit stronger because the body is bigger than what we saw on SPY. Let's go back to SPY and see this is a little bit weaker than what we had with the composite. And if you're new to candles, the blue is when you close stronger than you open and the pink is in reverse.

1:01:55Now we're going over the regressions. We don't have enough time in there for the regressions because we would start it on the follow through day here on the 8th. And we were going to wait. We'll put a new regression line in there, assuming we continue moving up. And we'll put that on once we're at least 35 days from that. And then we'll stop it at 50 days. So just a reminder, we'll look at that all the time. Now it's a 50 % retracement. This is an art. Right now, not a whole lot to think about with this. We're just using the day before the gap up and then today's high and we want to stay in the northern hemisphere.

1:02:33We're clearly doing that at the moment. And the same thing with the NASDAQ. We'll move over to our levels. We'll start off with SPY since we like to do that. This one, the two key levels that you would like to stay above, but you don't have to stay above. And that's why they're in yellow there. Let me blow this up a little bit more. So the lows from this week, from yesterday and earlier in the week, the 702-ish, that's an area that you would like to stay above. But if you come down below that, you would like to stay above the 697 because that goes back to these old highs over here. Now, part of me would actually like that to happen, but it just depends on how that does.

1:03:19but you know we'll see what what ends up happening but if you go down much further then you're running into trouble especially if you break the 21 day or you break your 50 day and then this line in the sand here the 671 that would be giving up all the gains of this and you wouldn't want to be um in heavy all the way down there you would you know be lightening up at each one of these levels so both of the yellow lines as well as the blue line which is your 21-day and then ultimately your 50-day. So let's look at the NASDAQ. Hold on a sec. And same basic thing there, a little bit more powerful, but the lows from this week and the highs from over here and then the same lines we've got going on there.

1:04:05Now we're going to move over to this, the Webinacci chart that I've talked about in great detail over the last couple months here. And this new little indicator down here is very, very simple. And we'll eventually put this in market surge when we get the time. But all it is, is all of these moving averages. These are just Fibonacci moving numbers in here. So the white line is your current day or is each day just in a line chart. Then you've got a three day, a five day, an eight day, a 13-day, a 21-day, 34, 55, and so on, down to 233. Those are all just important Fibonacci numbers. And what it does is it kind of plays it out and allows you to know, is this trend nice or choppy?

1:04:58And how I do that is by just adding them up. I go, okay, is the three above the five? It gets a plus one. Is a three above the eight? It gets a plus one and so on. I do that for each one of the shorter ones versus the longer ones. And then it tallies up to either zero if everything is going down or 45 if it's like it is right here. The way to use this, and we go over this every week, is look for key levels. One is the 35 level, which is your yellow line. So if we start rolling over a little bit, that's fine because during this power trend that we had back over here, You did come down a few times in here, but you didn't get to your yellow, the 35, until mid-November.

1:05:46You were able to recover from it. And we came down again in February and it ultimately got a lot worse. So that is when you're up looking at your exit. But then when you're turning near the bottom, you don't have to wait to get all the way up to the 35. You look at key levels where ledges and stuff, where it's going back above. And right here on the 6th and the 7th, that was telling you that, you know, this market is turning. That was even before the follow through. We'll do the same thing on the NASDAQ composite, even more powerful here. And that was giving you, starting to give you clues around April 2nd and April 6th in there.

1:06:25So that's looking solid. Now your favorite one, Allie. What do you have to say about this one? We'll start off with Spy.

1:06:31Mike Webster:They keep it simple. 21 day only. We are above a rising 21 day. So all good here. All systems go. Perfect. And it's scary how bullish we're being. It's really scaring me. I don't like talking this bullish, but it is what it is. Now let's move on to our next week. It could be totally different. We'll see, you know, you you trade the market and you interpret the market that's in front of you, not the one that you fear or you want. And so right now, this is set up in a really powerful way. All right. So we've got the Webby RSI on here. That's just measuring your low versus your 21-day, expressing ATRs.

1:07:13The key point on here is that we were able to have a thrust in here. We were able to get up to three ATRs. That is a very positive sign for this power trend that we're in. And I did a lot of that work on the Webby Rambles on that comes out tomorrow morning of looking at the Webby RSI in relationship to the power trends. And if you've got a couple hours to spend, you can watch that and see all the details. But in a nutshell, there's a couple different ways that it happens. Either you get that power with the Webby RSI getting up to three or in that ballpark that's telling you that you had a thrust up there and there was some power.

1:07:54or you just start building from the level that you turn on the power trend. So we turned on the power trend this week. And so the other kind of the or statement is, are you making progress from there? And we are already starting to make that progress. So this is currently building a wall of blue, one brick at a time. And let's go to the NASDAQ. Same thing there. That got above three. So that's what we like to see. Now we'll go over to our Bob Marley off high. Not a whole lot to interpret there. We'll look at SPY first. We're up near highs. Not much to say there. Same thing with the NASDAQ. So we'll leave that one alone for this week.

1:08:41Great. Man, I breezed through that. I give myself an A plus, man, because we're waiting. I know.

1:08:46Mike Webster:I was shocked that you already finished with that. Wow. You've got a little baby to go take care of. So before we wrap things up, because I'm always afraid that I'm going to forget. What's going on with your little one? Well, you're too kind for asking. And this week, her milestone was successfully waking me up every morning between 4 and 5 a.m.

1:09:13Mike Webster:Yeah, we're having a little developmental sleep regression. You take the good with the bad and then you have. She's the best though. Yeah, the bad. Even still. Even with that. You know what? Yeah. That'll make you appreciate her even more because you've got to put it, you know, anything that is worth having is worth putting in hard work. So, but you look rested. So that really matters, right? Well, you know, the makeup helps. But no, she's a ton of fun. So it never upsets me having to tend to her needs. It's the best. That was great. So, all right. Well, thanks. Do you have a song for the week to end us on?

1:09:56Oh, my gosh. You pick one first. Well, I think I should have thought of one.

1:10:04Mike Webster:Oh, my gosh. I don't even, is it that song called I've Got the Power? I've Got the Power. Okay, there you go. We'll go with that one. I'll spare everyone by not singing it. Oh, you've got a great voice. If I sang it, we would shut down. I think IBD would actually officially close up shop. That's the power trend. But I'm going to go with Back in Black because we're back in new highs. And, you know, I'm going to go with Back in Black because it's one of the greatest albums of all time. Right? Yeah. Yeah. It's just a good, you know, good vibe for that tune. You know, gets you in the right. And rock and roll ain't noise pollution is the best song off of that album, I just have to say.

1:10:47It's just a fact. You can look it up. You can Google it.

1:10:50Mike Webster:Yeah. Well, I'm glad we ended our long episode with this discussion. Thanks, Webby. Only the true fans, the true fans stuck with us. Thank you so much. And a quick, quick reminder. Yeah. Go ahead. Of all the changes tomorrow, I can't believe I didn't talk about it. Were you going to talk about that now? You can do it. Just do it really quickly. Okay. Tomorrow morning, anyone who uses Market Surge, you are in store for so much fun. So many great things. Pattern Rec is redone. Redid it. You're going to dig it. We've got more to work on it. I redid all of the ratings. Major improvements there. Like really, really next level.

1:11:33Something we needed to do for a long time. We finally did it. Took me a lot of time. A lot of programming time. So thank you to the programmers who are involved with that and Justin for all the QA that he did on that. And then the two of us built the accumulation distribution together. That was a ton of fun. And then I rebuilt what I'm most excited about is the Gross 250. Total overhaul of that in a major way. You'll see 350 names tomorrow. That's the new limit. It used to be 300 and really materially improved the quality of that list. And I'm going to do a second round of changes in the coming months of that.

1:12:13But all the bulk of them were there. Just a few things I want to tweak here and there. But you'll see that tomorrow morning. So I'm super excited about it. Play through that. We do have on our website a video that the two of us, Ali and I, did two hours long going over the nitty gritty of that. I've also posted it on my ex-handle, MWebster1971. Watch wherever you want to watch it. And yeah, just couldn't be more excited that this is finally out. And I just want to thank all the people behind the scenes that helped with everything. It really takes a village to get anything done. So thank you to all the hard work from all the folks.

1:12:55Mike Webster:Well said, Webby. All right, well, we'll see you back here next Friday. check out the Webby Rambles On series on the Webby 5150 YouTube channel. We also have that long form video that Webby was talking about on the Investor's Business Daily YouTube channel. So check that out. We'll also see Webby on IBD Live next Wednesday. Thanks again for tuning in, everyone. Hope you have a great weekend.

1:13:32Mike Webster:In moments of seismic change, through crisis and transformation, it is our real world experience that delivers. FTI Consulting. Experts with impact.