Powerful Week Triggers These Notable Signals; Powell, Comfort Systems, Quanta In Focus

26:45The very next day after that gap up, that's your perfect day to really kind of start pressing the gas. Why? You know why, Allie, you tell us.

26:56Justin Nielsen:upside reversal, little shake out there, and it closed above those highs. There you go. And then the rest was kind of history. We can go out to the next stage. Okay. So now we're going forward in time to 2020, right? That's where you want to go now? Okay. So now let's go to 2020. And like you said, erase your brain for what, you know, happens. let's go to 2020

27:27okay so this was the COVID bear market and yes we all know that it went up but you got to erase it like what was that men in black where they press a little button and oh yeah I love yeah you got to do that like okay I'm gonna use my founders club IBD founders club erase my brand beautiful gap on there the news was terrible just like now So put yourself back. It wasn't that long ago.

27:52Justin Nielsen:No one believed it. No one believed it at all. But you've got that gap on there. Close above the 21 day and a big day in a big way. Above that high. Oh, you were going exactly where I was going. Now let's move out from there. Okay. So we want to go ahead a couple of days. Almost a week. So for 14, 2020. There you go. Now back above your 200-day and your declining 50-day. The declining 50-day would scare you to death, but at least you got back above the 50 and the 200. So with a move above a declining 50-day, again, what I learned from Chuck was lots of times they'll back and fill around there a little bit as people are just kind of digesting those gains.

28:39Let's see how that played out.

28:41Justin Nielsen:And this is a subsequent follow-through day, right? Yes, it was. So once you get, good point. Once you get your original follow-through day, any other days that qualify on a percentage basis after that, and if you use the volume component there, as long as it's above the close of your original follow-through day, it's considered subsequent follow-through day, and then it's what we call a buy signal in IBD market school rules. Yeah, so we like seeing that. Okay, well, now we'll go to 6-5 of 2020. so to your point about the declining 50 go ahead that was just the the key point here was that lime colored line there and you're low the fact that it was able to stay above that that pretty much that whole time and just one bounce off of that even though the news flow was terrible i mean we were you know all these terrible things were happening with covet but everything was shut down.

29:39You know, I was nervous. If you weren't nervous, you know, you're not human or paying attention, but the market was your, you know, your tell. Yeah.

29:49Justin Nielsen:And this is why I love IEBD's approach to historical precedents and technical analysis because there was a, I'll never forget this, a financial news network that had a special every evening called Markets in Turmoil. in like into new highs into that summer like I think into July probably markets and turmoil and we were at we were back at highs so I'll never forget many many years but there's some people on there that I like but I just yeah yeah yeah I don't want to say anything bad yeah uh but That's the beauty of what we do. You know, we we are considering that context with the news and the macro and all of that.

30:41Justin Nielsen:But at the end of the day, listening to the charts is really going to give you that edge. And people need to realize with media, all media and we're media, it's about selling advertisement. That's everyone knows that. And so when, you know, networks do things like that, you know, you kind of can't blame them. They're just trying to get eyeballs there. But what we try to do is help people. And so we're going to just tell it the way it is. And, you know, versus just trying to get eyeballs. Yes. Okay. And I think we've got one more example. We're going to go to 2014 now, right? My favorite one. Okay.

31:22This is what I think has a precedent right now. Okay.

31:25Justin Nielsen:10-21 of 2014. And the reason why I'm using this as the closest precedent is not perfect, but the position with the 200-day where you just got down underneath it for just a little bit. And because the other ones, yes, they had the gap and everything, but the position in 2002, even though that was great that it worked out, So it was, you know, that was after a couple year bear market. So just a different position. This looks very similar, but not exactly. Well, it looks more like our current market than any of the other examples. But you wouldn't say it's a perfectly drawn out precedent because it isn't.

32:10But same basic feel. And let's see what a massive gap on there. Back above your 21 day, you're low above your 200 day. Sound familiar? Let's go out to the next date on there.

32:22Justin Nielsen:Okay, so we're going to go to 1031 of 2014. And there you go, back up into new highs. And again, focus in on the fact that your low is holding above your 21 day. And that was our last one, right? Yep. So let's go with that in mind, like just cement this in your mind, everybody. Now let's go to our current day and just picture that is a possibility. Does it mean it's going to happen? No, but you have to have some sort of roadmap of what to expect. Did we fade into the close? And would your expectation based on a fade into the close on a Friday mean maybe a week open? Yeah, probably, but it's probably going to be dictated by the news flow.

33:13but even if we come down and test the 22 ,500, that would still be normal and natural. I hope it doesn't happen, but that's certainly in the cards. Now, where is your line in the sand? For me at this point now, the 200 day would be a major line in the sand for me. If we get a close below that, I'm gonna have to back away in a big way. I don't want it to go all the way down to that gap. So it would be a gradual thing. The way we do things around here is gradual. Now, some of us personally might not always be gradual, but as far as how we explain to do things in the right, the right way to do it is just gradual.

33:58You put some money out there. If it's working, you put some more. If it's not working, you start backing away. And so that's where we stand. And I've got to say, you know, just listening around and looking around, lots of people are still negative. And that's really what you want. But you don't want to put too much weight into that because you can't back test it because it just depends on the people that you're around. Like if we, you know, if it was Bill that we were around with, I know he would be super bullish right now. So then that wouldn't help there. So don't, you know, I wouldn't look at bull bear.

34:32I wouldn't put too much weight into what other people are saying. But I do. It's like a little extra little thing. The more nervous people are, if everyone was gung-ho, then I would be more concerned. So I haven't looked at the YouTube comments. But if everyone's saying that I'm all wet on this, that would make me happy. So you guys can go ahead and put that in there.

34:55Justin Nielsen:Let's see. I'll check it out. But next, let me see, actually. Okay. I'm trying to see. I apologize. I'm getting a little bit of a cold. No, you're okay. I was trying to see. I don't know. I'm not seeing a lot of negativity. Well, let us know. If you're negative on this market, let us know. Or if you're positive, let us know in the Q &A. Give us your thoughts. Yeah, and if you like Sammy Hagar better than David Lee Roth, let us know, because then you're a true person. We'll take that, too. Okay, thanks so much, Webby. Really important context for the moment and levels to watch here. Okay, next on our list, let's take a look at a couple of ETFs.

35:50Justin Nielsen:I know one that we've focused on in recent, not only recent Fridays, but even going back to last year is this VXUS looking at the world minus the US. This also had a great week this week and in a different position. So this is a tricky area because we saw a big character change towards the end of February, beginning of March, but didn't quite see as much destruction, one might argue, versus the NASDAQ, the S &P, because it held that 200-day. What do you make of the action now? Is this normal and natural here? What are you expecting? Yeah, I do have a small position in this, and I thought that today, just to get some more international exposure, is it a perfect setup?

36:42No. But what I like is yesterday's, you know, shakeout that we had and a test of at least a part of that gap. So if folks don't know, this is the rest of the world, market cap weighted, excluding the U.S. So the fact that this is moving up, and remember, if you kind of put yourself back to how things were looking before we fell apart, this was really strong on a relative basis. And it's a slower, pokier, like a low ATR, which we can see the ATR up there. It's only two after all of this kind of destruction that we've had. That big gap down, that hurt me because I was in there and I got hurt in a big way on the day because I wasn't expecting that big of a move.

37:28It was really an extraordinarily large move for an instrument like this. But that's the type of news that we had. You got to remember, if that happened before, it can happen again. So, you know, if you end up being down four or five percent on an instrument like this, you've got to be very careful and back away. This to me looks like it's building the right side of a cup, as you can see there with pattern wreck. And, you know, even if it were to handle out here, that would be fine. So you could handle out. You just want to stay above that 80 level, which is give or take your your 50 day. But I wouldn't be like piling in in a big way here.

38:09But it was just nice to kind of get some slower exposure there. And it's you you don't have to have the international markets working for you. But given the context of the news, the fact that the global markets on balance are looking good, I like that.

38:25Justin Nielsen:And zooming in in the international space, we were looking at this Brazil ETF on IBD Live when it was clearing the trend line and over the last couple of days. So a lot of strength in this area, Webby. Yeah, so I do have a position here as well. Well, and to me, you want to see base breakouts on an index level because then you have something to trade against. So what would be normal and natural? Well, sometimes a pullback into the top of the pivot, that happens about half the time, but not going much below that. So it gives you an expectation for, you know, what should, let me restate that. The fact that it could pull back into that pivot area, that would still be normal and natural.

39:14But given the way this moved up, I would say that that's less likely to happen. And so, you know, I have some there. Not a huge exposure, but I like having, you know, being kind of spread out. You know, it helps me sleep at night. So having a VXUS, which is very spread out, and something like this is less spread out. but you're going to get a little bit more oomph there. So I think it looks good. Now, can you buy it here? No, it's too far out of there. So if it can, you know, go sideways a little bit, you know, technically it's still in the buy zone, but, you know, you don't, if you're buying it here, you've got to say, where are you going to get stopped out?

39:59And I would say the low of the gap up day, you wouldn't want to give it any more than that.

40:04Justin Nielsen:Right. Okay. Okay. And speaking of power, chips came back in a big way this week, taking a look at the weekly gain for the SMH, up 11.4%. So a lot of stocks, broad-based strength, I would say, in this sector, no doubt. Yeah. And I like this. I do have a small position here, too. But what I like about this is ships tend to be kind of a leading group. And earlier this week, the utilities were really strong. Let's go to XLU for a second. Sure. That was bothering me. And I was, yeah, I was asking Ed, I'm like, why is, you know, why are utilities so strong? And I like the fact that they, because utilities is kind of like the XLP or, you know, the consumer staples, that's, those work when people are scared.

40:58And so that was bothering me that there was, it was strong. And so I like the fact that this was weaker than things. And you can see that RS line over the last couple of weeks going straight down. So that's another positive. You don't want those doing well and you want something like a chip sector doing well. And let's go to IGV for a second. This is about as bad as anything can get. The whole software thing has just been dead forever. And it was really in position to being so oversold that, you know, it could have gotten a bounce up to maybe 90 or even higher, but a lot of selling there. So what does that tell you that this is just really, really damaged goods and the fact that it can't bounce when when the market is doing what it's doing?

41:47Just be very, very careful, like with anything in software, even if you've got a name that is bucking the trend in software, I would just dial down the size because it's really hard to fight that. It would have to have a very unique story and fundamentals to be able to buck the trend when all this selling is happening because people will sell things like the IGV or the CIBR or the HAC or things like that. And then so your stock that's trying to buck the trend gets that selling from the ETF level. So it's not that they can't work, but they're just you're swimming upstream.

42:25Justin Nielsen:Well said. Totally agree. In a classroom of sodas, most stay quiet. Then there's Mr. Pibb, sweet cherry, bold outbursts, the kind of flavor that gets attention. Bold kick of cherry. Hey, yo, Mr. Pibb. Okay, let's take a look at some notable stocks from the week. A beautiful cup with handle breakout from Powell Industries that you took advantage of Webby. So nicely done with that. This stock up 26 % for the week. Look at that nice blue dot. So tell us a little more. Yeah. So I have a position in this. It's clearly extended, right? Because it's gone up 20 % within three days, really, or three or four days out of there.

43:14So you can't buy it here. But why I wanted to bring it up is I think this is the best looking chart out there. And I said that earlier this week on live. that uh so you want to focus in on those and see it are they still acting well like if this thing were to collapse unless it was some random news item like some you know the cfo leaves or something that really like really bad and it falls apart that um then that's okay it doesn't well it wouldn't be okay for me in my position but it would be okay from a market standpoint but if this were to roll back down, down to 200, because I always say half, you know, half the breakouts can pull back into the pivot.

43:55Bill would say that. I studied it. It's true. And in this position, that wouldn't be normal and natural. So really holding above the gap up there, that's what you would expect. And there's some back and fill in here would be normal and natural. Now, what I don't like about it, let's go to the, because I've always said this, let's go to the weekly. I said it's the best looking chart, but not the best looking fundamentals. It's got problems with the fundamentals, deceleration and earnings, pathetic sales. So I'm not crazy about it from that standpoint, but you look at the chart and it has acceptable fundamentals, but not great fundamentals and not even okay fundamentals.

44:40They really are problematic. And that bothers me. And I built a way oversized position earlier this week. And I brought it down to just an oversized position because of that. Because the fundamentals were really, really bothering me. But how does that relate to you guys? I would watch this and see if it can build like a webby shelf in there and something to trade against. Or if it goes sideways and has an upside reversal in there, something to trade against. Because right now, if you buy it here, you don't know you're wrong until that gap, the gap up low. And that's a long way down. And so you just don't want to be stretching.

45:20Justin Nielsen:Exactly. And I love what you said about the leadership, the stocks that led this week. We want to see them holding up. That's another big tell for the health of the overall market. Let's go to Fastly for a second because I was surprised at this one. Yeah, that was a surprising one. I did have a tiny position in this that I blew out early this morning and luckily didn't get hurt. But I was surprised because this was one of the ones that was really bucking the trend. Now, I was too busy to see why the news flow of why this happened. And yesterday I tried to get some support at the 21 day and that's where I was buying my position back.

46:00But it was small because it was weird that it was acting weak in this type of tape. Like, I was not expecting it to be down 20 % today. But if you get a lot of these in there, then you start getting worried. Now, I don't know what the news was. If it was a one-off type of thing that was just very specific to this, that's different. But you just don't want a bunch of those.

46:25Justin Nielsen:Yeah. But to your point earlier, sector, software, IRBware. All right. Let's go to fix. Okay. So another one, I've got a tiny position in this one. I don't think the base looks that great, you know, in isolation. But relative to what the market was doing, it looks really good. So there's two lenses you look at a base from. Just, okay, run-of-the-mill, a base that forms in like a sideways market or an uptrend or something that was formed in what we were going through. And how you can tell the difference is the RS line. So your RS line is your clue on this one as it is in almost all cases that it's leading the market.

47:13And so you want to go with your leaders. And this is not that far out of there, kind of stalling around a little bit at the 1600 level. I hope it goes sideways. I wouldn't even mind if it shook me out so I could get back in with a real size because it's a token shotgun position. but it's nice to see things like this. I would this weekend do a lot of screening, especially things that have had a big move this week, put them in a separate list and then just go and look and see, okay, are they breaking down? You know, what percent of them are breaking down? And Bill used to have us do that. It key points in the market.

47:50He would pull all 10 of us typically at 10 p.m. and say, okay, what percent of the leaders were still acting right in varying ways that we would look at it. And then collectively, he would get a sense for what the leadership was doing. And that's what I think folks can do at home. Just build your own. This is the key time to do a bunch of screening this weekend. Even if you're, you know, all the stocks that are way extended, you know, that's fine. You just put them in that list. Doesn't mean you're buying them, but you're observing them to see if they are acting right or not. Yeah.

48:25Justin Nielsen:Okay. Let's round things out for this segment with a look at PWR. This is Qantas services, a really nice upside reversal at the 50 day line. Then we had that gap on Wednesday and a nice gain for the week. Let's take a look at the weekly chart here at 4.4 % for the week. Now a little bit better fundamentals here. I know that we have that double-digit sales growth, perhaps not quite a fundamental powerhouse, but I would say ranks a bit better than Powell. Yeah, because I pay a lot of attention to sales growth because, you know, the earnings can, that's a whole different can of worms, but the sales, they are what they are.

49:10Like you can't, you know, there's nothing they can really do to adjust those. You can time different things with earnings. So I don't like that 7 % there. But why we're talking about this is just this is a kind of a slower stock, a lower ATR than the other ones that is more in position, even though that's not an official flat base. It's a flat base in spirit and it's not too far out of there. So that's all there really is to say about that. I know we went really long on that earlier segment so we can move forward.

49:45Justin Nielsen:I think it was worth taking a detailed look at some of those historical precedents. Oh, yeah, I think so, too. Let me share my charts. Okay, so this is our Bob Weir, take a step back segment. And so this is when we look at the weekly candles to get an expectation of what to expect next week. Now, the bad thing about this from an expectation is you can have almost anything next week. You hope for it to go higher and that would be normal and natural. But honestly, unless you come all the way down here to where we opened or even all the way down here from a candle standpoint, there's not much else you can say about that because when you have such a wide candle, lots of times you get that back and fill in there.

50:34So, you know, you wouldn't expect another candle up this big unless there was a total, you know, really, really good news flow. But it just tells you you had a really good week. And we had that setup week last week that was compelling. Let's look at the NASDAQ and the same thing there. We'll move on to our next chart. Here is the regression. We don't have enough time yet to draw a new regression line. So that's all there is to say there.

51:06Justin Nielsen:Time being if we want 50 trading days, ideally. Yes, we want 50 trading days. I'll start drawing a regression on there when we get about 35 days, and then we'll lock it in at 50. So we need a lot more time until we start drawing one on here. And you can see the power of the regression line. Once it falls out of it, you change your thinking and you're no longer in that uptrend until you get a new uptrend. And so we're in a new uptrend at this point by definition of having a follow-through day, but we don't have a trending market and you need a trending market, which you only get with time. So that was a good point, Allie.

51:47Let's go on to our 50 % retracement. So this one, you could do it from the highs over here to the low over here, nothing wrong with doing that. But I wanted to show a different way and how I'm looking at it is from the high of the day before the follow through day to the high of the follow through day and want to make sure that we stay in that northern hemisphere there. The 668.15 is the level. Let's go over to the NASDAQ. Same thing there, just using the day before the gap up. And so this is a 22 ,423. And that's not a hard line in the sand. It's just that general area you want to stay up there.

52:30So let's say we get some negative news, but not horrible news over the weekend. And we pull back in. I would just see, are we still living up here or do we start living down here? If we start living down there, I'm going to be backing away in a big way.

52:45Justin Nielsen:And you probably mentioned this, but I also I love how that 50 % right now coincides roughly with that 200 day. I didn't say that, but I wanted to say that, but I was trying to be brief. And that's why I love doing the show with you because you know it all. One day I'm going to do it on the opposite side. I'm going to learn how to do your stuff and I'm going to ask you questions. That'll be fun. We will do that. One day. On a freaky Friday. Yeah. Well, let's do that. That'll be maybe on like Halloween or something. Okay. So here are the levels that we have on Spy. Let me blow this up so we can see this a little better.

53:24our key line in the sand was that 619.29 we hope to not get down there but the really the low of this rally the 629.28 man if we get down there oh man we're in a world of pain so that level you don't want to be in when it gets down there so where do you want to look for the 659.61 that's the high of the gap up. That is what we'd be concerned with a close below that. And, you know, I'm pretty much probably going to be back into cash or very, very low exposure. So even though we look like we're in nosebleed, that, you know, this would be kind of my final line in the line in the sand on a closing basis.

54:09Let's see. And this was our old, that green line was our old line that we had from the highs over here around the October timeframe. That's why that's there. So I could put that to a yellow. Should have put it to a yellow. My mistake, sorry. So here, you could also look at the lows of the gap up as well as this. So I just, you know, I do these in a different way sometimes. And then the same thing here, we want to get through that level, which goes back to the October timeframe. Let's move on to the next one. This is a chart that I've been sharing over the last month or so. And I did do a full Webby Rambles on going over this.

54:51We now call it the Webinacci indicator. What are we looking at? All this mess, all these lines on the chart, what are we showing you? These are just a bunch of moving averages. The white line is actually the current price and all the others are moving averages. They're all Fibonacci numbers. So it's a 3, a 5, an 8, a 13, and you can Google all of them down to the 233. What is this line down at the bottom of the little blue line? That's very important. That's one of my indicators that it just tallies up. So when this white line is above this one, it gets a plus 1. And then when that line is above, when a 3 is above a 5, it gets a plus 1.

55:33If a 5 is above an 8 or a 13 or a 21 or 34, it gets a plus 1. So you just tally it up, and it can go from a 0 to a 45. And it's the trend of the line, so you've got that really U-shaped over here. And at this point, once we got over this ledge, that was a signal that we were turning. And now at this point, I really like getting through the 35 level. You don't wait for that. But once you get up there in good markets, you'll just be pinned to the top there. Let me, oops, let me zoom out. And oops, boy, it's been a long week. You can see in a good market how, you know, it just stays pinned up there pretty much between 40 to 45.

56:20So people will say that's when your lines are stacked properly. I think Harold likes saying that on IBD Live. So here, the NASDAQ, same thing. You can see how it was pinned to the top. That's when you're making your money. When it's going back and forth, that's when you're getting chopped up. And so this is just another visual that I really like to have to look at. Let's see what the IWM is doing. Wow, that's all the way up at 41. I do have a position in SPIQs and IWM. I should have said that. Sorry. Then we'll move on to your favorite one, Allie. How do you interpret this one? And what are we looking at?

56:59Justin Nielsen:Looking good. This is the keep it simple 21 day only. Not only do I like how we are back above that level, but it's now back in an uptrend. So both of those things are very good. We like to see it. Nice. And then the same thing there on the NASDAQ. Okay, let me stop sharing these charts and we'll move over to our, where did I, where is that one? Hold on a second. I'm sorry. You can talk. No worries. Anything you want while I try to do this. Well, the 21 day, we love looking at that as a timing signal. And for those who are newer to this, that's something that Webby came up with after a lot, a lot of research.

57:43Justin Nielsen:So we're very thankful that you did come up with that. Oh, thank you. And it's very widely used now. People are just like, oh, the 21 day, the 21 day. That's why I put my name on everything now, because I got sick of that. I really did get sick of that. It really, really irks me. It is what it is. But so this down here, the Webby RSI and why I put my name on that is measuring the distance between your low and the 21 day and expressed in ATRs, average true ranges over here. What you want in a good market is a wall of blue. That's telling you that your low is trending above your 21 day. That's a beautiful thing down here.

58:23When your high is underneath it, it turns into this burnt orange color. And that's a very negative thing. But you look for inflection points when it gets to a real extreme. This really didn't get to an extreme. An extreme is more like a three, but it still got up there pretty high. And so now we want to see this wall of blue continue. you. And the only way to do that would be for that low to stay above it. Now, when you start off in a new uptrend, what typically ends up happening in a healthy one is you will get a really stretched because, um, meaning this, this blue thing will get up to three or so early on.

59:07That's what you want to see as people don't believe it. And, you know, shorts are getting squeezed and, and, uh, that shows the power. It's up there, but it's not up as much as I would like it to be. Part of that is a product of the ATR has increased because of the volatility. So it's not in percent, it's in ATRs. So that's the downside to it. But it's also, you know, it just evens things out. Same thing here on the NASDAQ. We've got that wall of blue that is starting. At least we've got a couple bricks in that wall, Allie. Do you know that reference? Yes. Yeah, there you go. Okay. Well, was that a guess or was that you knew?

59:51Oh, I knew that one. Okay. All right. Just check in. Otherwise we'd have to talk more music. All right. So now here's our Bob Marley off high indicator. So what in the world are we looking at? This is measuring how far off the highs you are in terms of ATRs. So green is zero to four, yellow is four to eight, and below that is red. So there's two ways of looking at this. One, what is normal and natural? How has it been pulling back in? And you can kind of see that between about two and three ATRs off the highs where this one likes to settle, sometimes it gets a little bit more extreme. This was really bad down there.

1:00:35I mean, we were getting almost down to eight ATRs off the high. Now we're back up almost near only two ATRs off. So that's very healthy. Let's see the NASDAQ, same thing there. So what we want to see is once this kind of levels out, we want these to not pull back in more than this one, because each one has its different character. This one is closer to, you know, maybe three and a half, four ATRs, where it tends to get support. So that's what we would be looking for there. And oh my gosh, I think I sped up quite a bit. I'm very proud of myself. I give myself an A plus for not rambling on too much.

1:01:16Justin Nielsen:Yes, there you go. You leave that for the YouTube channel, Webby Fiddle. Yeah, all avoided I ramble. Yeah, I did some of them. Well, go ahead. No, no, no. So there are two things. If folks want more details on what we were going over at the beginning of the show, watch that. And it'll be released as they always are. It's Saturday morning at Austin time, 6 a.m., because the world revolves around Austin time. You used to live, you know, be a Texan. So you know what that's about. Now you abandon us. That's not very cool. And the other thing, because I don't want to forget because my brain is a little fried.

1:01:56What is going on with your daughter? I'm asking if you had something else you want to talk about, we could talk about that at the end. But yeah, everyone wants to know.

1:02:04Justin Nielsen:Let's give a summary and an action plan for folks, just because this was a long episode. But my daughter is now sitting unassisted for pretty long periods. And it's really cute. And she can turn pages of the book. She knows what time, the timing of when to turn the page when you stop reading it. Or you can even tell her, hey, can you turn the page? She knows to turn the page while she's sitting. So, yeah, we're very proud. Oh, my gosh. So what's her favorite book right now? Oh, she loves a lot of the Sandra Boynton books. So I don't know if you're familiar with those, but like Mubalala is one.

1:02:51Justin Nielsen:She has a lot. She has a lot of books, but I like their Made in the USA. Oh, that's cool. How about Edward the Emu? Oh, no. You need to say, I guess, audience, send in your favorite children's books. Edward the E.M. was sick of the zoo. There was nowhere to go. There was nothing to do. I read that almost every night to my kids. Oh, yeah. I know. I have about probably 20 books memorized. And Dr. Seuss was always good. Bernstein Bears were good. Those were good. Classic. So to summarize, that's wonderful. And we want to keep in touch until she's 18 and off. We'll be asking you every week. Well, I know you're a proud papa too.

1:03:32Yes, as all are. So what to do with the market. This weekend, you've got to do a lot of research. And I would use beta for your research, really get used to that. And I would screen for what was up the most, just broadly based, really just anything with the liquidity that you like, let's say$75 million volume is what I tend to use. I also will use as low as$25 million volume. That's in our tool that you can search for. And I would just do the highest closing range. So like an 80 closing range, meaning it's in the top part of it for the week and what was up the most. And I would put in that list, I would sort it by sector.

1:04:20So I would do the first one would be sector and then the second and you can lock that in on market surge and then the secondary sort would be the percent gain for the week and look at it in that order and and as you go through it i would just flag the charts that you like so we just have this f5 key on market surge and then that will put a little flag on it when you're done with that take all those stocks that were in your flag that you flagged and put a little green flag up on top then move those into a watch list, a special watch list for what was up the most this week that kind of looks interesting.

1:04:58Then every week or even every day, you can look at that and do that analysis of are those acting normal and natural? And if you start seeing a lot of them acting weak, then that's your clue. Now, another reason why I was getting so bullish is I've been working on this update to the Growth 250 for the better half of a, for a while now. And that'll be out in a few weeks. And you and I did a video on that last Friday on Good Friday. That'll be coming out soon. But in that, I was screening even more than I normally screen. And I was looking at the full universe that the Growth 250 was even bigger than the Growth 250, which now maxes out at 350 names.

1:05:40And I was just shocked at how many names were making it through before the follow through day. And that's not normal. If we were going into a bear market, you would not be getting that many stocks. And the reason why I designed the Growth 250 to, even though the name doesn't tell you that, it's never 250 names. It can go up to 350 now in the past. It was up to 300. And when in a bad environment, that comes down just like an accordion. It expands and contracts. And it gives you a signal for how much merchandise is out there. And we were maxed out at 350 this whole way behind the scenes with my new code on there.

1:06:26with over 30 screens going and all the secret sauce that was happening. And that is something that you can use, you know, as part of your analysis. And I always have. I strongly advise people to, you know, look at that and make it part of their normal weekend routine. So that's one thing. But also, as we say all the time, put a game plan together and email yourself. Because anything can happen next week. Over the weekend, you know, some crazy things can happen. We could fall apart next week. And if you're in up to your eyeballs like I am, you need to have an exit strategy. What are the things that you're going to sell first, second and third?

1:07:06To do that, rate all of your stocks from an A to a C. You probably shouldn't be owning anything less than a C. Right now, probably not anything less than a B. And then if you get a really bad day in the market, you want to sell your worst ones first. not what happens to be down the most now if it's going through a sell signal you want to blow it out but if it's just something that's everything is down and you don't know what to do there are a couple things you can do you can just reduce across the board i'll do that all the time where i'll just say okay i just i'm going to reduce everything by 10 percent you know so if i got a 25 position or a two and a half percent position or one and a quarter percent position i'm just going to sell 10 % of everything across the board if I don't know what to do.

1:07:51And then, but if I do and I say, okay, this is my A stock, like the Powell that I was looking at, I look at that as my A caliber stock. And I got a bunch of other shotgun positions. The shotgun positions are going to go first because those are B's or C's. And then that one's my A. So everyone should do that. The key is email yourself because if that happens and you're going to be like, you know, shocked, you just go back to your email, go, okay, this was my game plan. Let me see if that still makes sense. Sometimes you can always be flexible and adjust, but that's what I would say in summary.

1:08:27Justin Nielsen:Well, it was a monumental week, no matter what happens next. And we have a game plan. So thank you so much for that roadmap and that clarity, Webby. Really appreciate it. it is all right thank you so much webby and thanks everyone for tuning in that is it from us for this week but there's more ways to stay in touch with ibd and our latest thinking as well as webby's he mentioned his youtube channel webby 5150 and also the ibd youtube channel investors business daily we've got a lot great videos there including that podcast that webby was on with Justin. So check all of that out. We hope you have a great weekend.

1:09:11Justin Nielsen:Get prepared for another week ahead. We'll see you on the other side, everyone. Thanks so much.

1:09:31Hey, this is Telus Demos.

1:09:33Justin Nielsen:And I'm Miriam Gottfried. We're reporters at The Wall Street Journal and the hosts of WSJ's Take on the Week. It's a weekly show that gives listeners a leg up in the world of markets and investing. From the Fed's moves to market bubbles, we dive into the biggest deals, key players and business news ahead. If you're looking for more news and tools that you can use to help navigate the markets, consider becoming a subscriber to The Wall Street Journal. Visit subscribe.wsj.com slash take on the week to subscribe now.