Watch For This Key Signal As Volatility Picks Up; L3Harris, Cava, Imax In Focus

19:13Alissa Coram:No, the other one to the, that one. Yeah, that's your day one. Then you go up two, you don't get a follow-through day, and then you're waiting. And then one of those days is your follow-through day. When it's lower in there, it's kind of a weird position. But again, you can always use the green line, which is your 21 day. So let's go to the next one.

19:34Mike Webster:Okay. We're going to go to 11.22 of 96. So this is how that ultimately played out. Yep. Okay. Next on the list, let's go to 10.27 of 1997. So 10.

19:48Alissa Coram:And there's a reason why I'm focusing on the 90s, because I do believe, as we've talked about, and Ropes has talked about, and other people have talked about, that we feel that the best parallel. We can either go back to like the railroads back in the day, or we could go to the internet. You know, some big game changers, or even you look at when the airlines came out, but this is an even bigger game changer. The whole AI thing is probably the most similar with what came in the 90s. So it's a worthwhile time to study. So this again, kind of like the last one was falling out of bed, falling down to the magnet of the 200 day.

20:26Alissa Coram:So a little bit different, but let's look and see how that played out. Okay, when you have such a bad day like that, this feels more in the camp of what happened with the VXUS than what happened with the NASDAQ. Really bad break, and you get that upside reversal. You've got to be careful when the upside reversals are this wide that you've got to think you don't know that you're wrong until you get down to that low of that day. So you've got to be careful buying on a day like this because your risk is enormous, even if it ends up working out. Let's see how this one played out.

21:02Mike Webster:And you and I have talked previously, we've looked at historical precedents. Once you get this kind of volatility, it can take a while for things to calm down in your daily ranges to get better. But let's see what this shows in terms of that.

21:16Alissa Coram:Oh, my gosh. It's so nice to have you back because that's exactly what happened. And that was exactly my point. And we never talked about this, people. We didn't. Folks watching, that's how good she is. She knew what I was thinking. So the problem is... Takes on and on. So the thing here is that point that she was just making. And lots of times you'll come down and test that ultimate low or sometimes shake out below it or at least get close enough to it that you probably would have sold anything that you would have bought. This is the point. This is why I'm saying it's dangerous. This is more normal than not after a bad break.

21:57Alissa Coram:And again, it was more of the global bad break that I'm concerned with rather than what was happening here in things like the NASDAQ. So it's a time element where in that you can get chopped up a lot. Let me just tell you, I've been chopped up a ton since October and we were going up. You get in a place like that, you're going to be very, very, very careful. Let's go to the next one.

22:22Mike Webster:Highway to the Danger Zone? Oh, my gosh.

22:24Alissa Coram:I like that. Look at the music reference. Let's go to... That was from Top Gun, right? Yeah. Yeah. Steve Stevens played the guitar on some stuff on that. And he was from... You're right. Billy Idol. Okay. So now we had one successful test there at 1715. Now we have another one down here. Let's see how this one ends up playing out.

22:48Mike Webster:Okay. We're going to go to the next day, 8-7, bounced up to the 50, got rejected a little bit there.

22:55Alissa Coram:And we can keep going.

22:57Mike Webster:Okay. We're going to go to 10-14.

23:02Alissa Coram:Okay. So you can see you were trying to get support. You're stuck underneath your 50-day, which is your red line there. That's a very important one to look at. And then the key on this is when you ultimately broke through that 200-day, man, what you were talking about is the volatility afterwards. That just really expanded quite a bit. And then that was, I think it was like 33 % down to the low. That was really severe action, crazy action. But let's see how it played out.

23:41Mike Webster:Okay. The next state that we're going to go to is 1218 of this year, 98.

23:48Alissa Coram:Okay, this is what I want everyone to remember. And so you don't like shut your computer down and stop looking at stocks. Because if you do, at some point, it'll turn around. In this case, it was weeks or months before that happened. But if you weren't building your watch list, you wouldn't know the things that were holding up better. Let's go to Charles Schwab because it's the poster child for this time frame. This is one that Bill made a ton off of. And look at the difference there from the 2108 shakeout in the handle versus your bottom there, the 1850. And look at those two dates. And what was the date of the 2108?

24:31Alissa Coram:Just do a track price to see what the date is.

24:34Mike Webster:Let's do the track price there. That was on 108. Okay.

24:38Alissa Coram:So now look at those two points and look at the ones higher than the other one. And then let's look at the NASDAQ.

24:47Mike Webster:So 10.8 was that low. Yeah. And you see, that's a positive divergence.

24:54Alissa Coram:And that's what Bill was doing there. He was looking and saying, okay, well, the stock held up when the market took another low. So if we take another low, you want to see which stocks are lifting in that time frame because that's where the best ones will come out from. And I think we have another date or two. We do.

25:14Mike Webster:So let's go to the 2010s. We're going to go to 5-6 of 2010, not 2019. There we go.

25:23Alissa Coram:Okay, so that was a flash crash.

25:26Mike Webster:There we go.

25:27Alissa Coram:So that was a flash crash, and it kind of felt a little bit like, now that was more of a technical thing than news the way we had it. There wasn't news that was doing it. It was just this fluke thing that happened. But the point is that when you changed character, you needed time. And that's something you picked up on. Let's go out to the next date.

25:50Mike Webster:Okay, we're going to go to 520.

25:53Alissa Coram:Tried to bounce, got rejected. Yeah. And so this is very normal to come back down and test that original one. That's normal and natural. Not fun in this case, but normal and natural in the next date.

26:06Mike Webster:Okay. We're going to go all the way to December of 2010. And there you can see in context of what played out.

26:15Alissa Coram:I don't want to be a bearer of bad news, but if we break, you know, badly, you know, underneath the 200-day, you probably are going to need this time. So let's just hope for something that we don't get into that situation. But got to be honest, you know, this is what what can happen. But, you know, it's all up to the news, really. Do we have one more, I think? Yep. Yep. 2014. OK.

26:38Mike Webster:Or 11 of 2014.

26:44Alissa Coram:So this one feels more like what we're what we've been in. Right. Where the 200 days kind of catching up at the same time is coming down a little bit. And that had been trending up nicely. Then it got a little choppy in there. Let's see how this one plays out.

26:59Mike Webster:Okay, we're going to go to 415, upside reversal right at the 200 day.

27:02Alissa Coram:And that's what you're looking for. You know, and that's what we're hoping for next week that you come down, you touch it. You could even undercut it a little bit. Or sometimes you don't even touch it, but you get close to it. And then you get that support there. That's what you'd like to see. Let's see what happens.

27:20Mike Webster:Then we're going to go to 7-1 of 2014. Perfect.

27:26Alissa Coram:Now, but you still had that time element in there of things kind of having to settle down. People had to believe it again. And again, it's not one of those things where it goes down, sharply down, and then straight back up. There's this time.

27:45Mike Webster:So with that being said, now we'll circle back to our current market.

27:50Alissa Coram:Yeah, so with this, now that you have those fresh in your mind, you go, okay, this one at this point doesn't look as bad as those. That's because we're still above the 200-day, and hopefully we stay that way. In a perfect world, we'd come down to the 22 ,000 next week, have a shakeout, upside reversal, and go from there. Now, if we get great news of the weekend, we are in position to have a follow-through day. So what is that? But we had our low, our pink rally day. So it wasn't up on the day, but that was our day one. Then the next day was up. Day two, today was day four. So on day five, as long as we don't undercut on that low, we're still counting.

28:33Alissa Coram:You're counting until that is breached. The closer you get to that, the more likely it's not going to end up working. But still, it's still intact and you've got to have an open mind. That's why you've got to run custom screens, which we have some to share later in the show, to look for names to buy if we do get a follow-through day and you preferably get above that 21 day. But that's what you're looking for. That could be in the cards. You want to be open to anything at all. let's go through that follow through day that I was talking about last week. And if you could point to that day, so it was a follow through day in spirit.

29:16Alissa Coram:It was your fourth day follow through right there. And, you know, with the low from four days before that was your day one, the close below that low was below the low of the follow through day was your signal that it's that that one had was going to fail. and that's where that ended up happening. But there's two ways for it to fail. A close below the low of the follow-through day, almost always, you know, anything that you bought on the follow-through day, you want to reverse at that point. And then a piercing, and that's a close, you can intraday go below it, but not on a closing basis. But the 22 ,256, 76, that level, once that is breached, the low of your rally day, that then it kills the whole thing.

30:09Alissa Coram:So that's just how follow-through days work. Most follow-through days fail and that's fine. It's still a very good way of getting into the market because what ends up happening is that you then have a line in the sand. So let's just, might be confusing to people if they're new. If on Monday we get an up to 1 % or more and you have your volume and everything behind it where the volume is higher than the prior day, that's the part of the system that then it's saying a green light to try to make progress. So you buy something in position. That's why you got to do your work. You don't have to buy a lot.

30:50Alissa Coram:Sometimes Bill would have us just buy 1 % position, like max invested 1 % if the market was in a really dangerous place and we hadn't been doing well. So there's nothing wrong with that, but you just got to buy something because it changes your mindset. And then if you're making progress from there, then you get in deeper. But until that happens, you just continue to play defense.

31:19Mike Webster:Great guidance there, Webby. Shall we take a look at some ETFs now? Yep, go ahead. Okay. So we have a list of some sector ETFs. This, of course, not quite as comprehensive as what Webby and Justin have been doing. So what we recommend, of course, is for you to go through that sort of universalist of ETFs to really add color to your analysis of market conditions. We're just going to highlight a couple of things here. One ETF of note, that's the Defense Tech ETF, SHLD Shield. We'll take a look at this on the weekly chart. Great relative strength line up 3.2 % for the week.

32:04Alissa Coram:I think that's the best looking ETF out there right now. Unfortunately, it's news driven, right? Because even though it's been doing well before this news, you got to believe a lot of people are in there buying because this war could be a long time. We don't know. We've seen other wars really extend over a long period of time. And that means a lot of money going into these companies to just continue, like even just replenishing what is being used. So that's why this is doing well. looks great, but it's just like buy an oil, buy an XOP or anything like that. They look great, but certain news item and you've got a ton of risk.

32:49Alissa Coram:So it is a gap down risk, which is kind of spooky.

32:53Mike Webster:Yeah. So you have to be really careful with your timing and risk management if you are to play these news driven things like that. Okay. Now for the rest of them, do we just want to go through? Yeah. You go through them quickly.

33:05Alissa Coram:Yeah.

33:06Mike Webster:What do you want to sort by? Worst or

33:08Alissa Coram:You pick it. Dealer's choice.

33:09Mike Webster:Well, I guess since we've already done the best staples, we know this is a very defensive area. Something we were talking about on IABD Live this morning was the fact that this week you started seeing a rotation out of that. Some of these defensive areas, Webby pointed out, mags looking a little bit better relatively. Let's also go to the energy sector. Still holding up well in this market. But a lot of these energy leaders are well-extended, and you do have that news risk. Here's a look at the biotech group keeping pace with the S &P 500 as it consolidates, builds a new base. So this is an area to watch, perhaps, for some setups, though we know that there are so many different kinds of companies within this group.

34:01Mike Webster:It's not the same as typically, historically, your chip sector, which really moves together. These have their own elements and factors at play individually most of the time. Sometimes, though, you do see those bigger group moves. Okay, utilities, also a defensive area that we have talked about, the AI utilities element. I think this is interesting to see that explosive move in the early February timeframe. and an orderly pullback so far, it looks like. And that relative strength line is at highs. So this continues to be an area to watch. I think healthcare, a number of your defensive growth stocks can come out of this sector, but it does look like we saw a bit of weakness here undercutting the recent lows of the base.

34:51Mike Webster:Next, we have the communication services. Some of your tech in here and look at that relative strength line, seeing that improve in the last week, week and a half or so. So we know some of the biggies in this ETF from the Mag 7.

35:07Alissa Coram:But you also have things like the AT &T and the Verizon and things like that. They're much smaller, but they're hanging in there.

35:15Mike Webster:But yes, yes, yeah, the telecom, for sure. Real estate, not an area that we typically traffic a whole lot, But it is holding up here after a nice move in that late January, early February timeframe. But coming off a little bit this week, the industrial sector has been a great performer since December. Bit of a pullback. Will we see support around this 50-day, 10-week line? And will we see setups from some of the leaders in this sector develop perhaps some add-on buying opportunities or some new bases? So that's something to watch there. Financial sector not looking too great here. Webby continuing to see that relative weakness in the chart.

36:05Mike Webster:Consumer discretionary. Your Tesla and your Amazon are in here looking at those recent bars. You talked about the low from earlier this week versus where we closed today. You can see a teeny tiny uptick in that relative strength line, but it's not at highs. But this week, a little bit of progress. Here's the materials seeing a bit of a rotation out of this area that had been strong heading into the last week or so. Here's technology. I'm seeing a very similar chart to the NASDAQ composite, of course, right at that 200-day line of battleground area. We'll have to see how that plays out. home construction.

36:49Mike Webster:Of course, we know this is very tied to interest rates. We're seeing this pullback quite notably here in recent weeks. ARC, I'm seeing a little bit of outperformance since the low in late January or so, but there's a lot of damage here. But at least in the immediate it short term, perhaps a little rotation into this area. But I think it's all a matter of looking at the individual names in this group, doing a little bit of research, seeing what some of these ARC type growth stocks, how they're performing, if there are any setups that are quality, because I think that's key instead of just trying to buy strength off lows.

37:38Mike Webster:We're looking at jets here. This is the airline seeing that come off quite a bit, of course, with spiking oil prices. And then here's a look at the chips. I think this is also notable, Webby, one of the techie AI areas that was looking very, very strong. Now we're seeing a little bit more damage this week. And with today's close, Friday's close below that upside reversal day for the market earlier in the week. So seeing some relative weakness as the week progressed. And then last but not least, Bitcoin. We were seeing some glimmers of hope, perhaps, for bulls as this is trying to make a turn. but coming off on Friday for the week, still up, but quite off the highs.

38:31Still a long way to go for the crypto trade.

38:35Mike Webster:Anything to add? Some ugly charts, man. Yeah.

38:39Alissa Coram:Really, like, really. I mean, you just got to call it the way you see it. It's like it just, and things can change on a dime. It only takes a couple, you know, one good shakeout upside reversal can make a terrible chart look great. So you've got to be, you have to look at reality, but you also have to be very open-minded to change. And that was a really good thing. The bill was a great role model for both of us in his ability to just change on a dime, be super bearish, flip to super bullish or super bullish, flip to super bearish, and not care about what you said 30 minutes before, three days before, three weeks before.

39:17Alissa Coram:Or just living in the moment, observing it and adjusting it. And reality is a lot of broken charts.

39:25Mike Webster:You're so right. One bar, a couple bars can make a world of difference sometimes potentially. But I think it goes back to your point of really doing your homework, keeping your lists up to date. And as our friend Ed Carson always says, to write your watch list in pencil, not pen. So that way you can.

39:45Alissa Coram:You got to love Ed. He's great.

39:48Mike Webster:By when you can keep updating them.

39:50Alissa Coram:Yep.

39:51Mike Webster:All right. Good stuff. Want to look at some watch list items? Yep. So if it's watch... This is a new era of American innovation. Using Google AI, Etsy is making it easier for shoppers to discover unique creations and helping sellers connect with the people who love their work. Learn more at g.co slash American Innovation. List time. Let's take a look at some watch list names. And let's go to the weekly time frame. Here's LHX. This is in that defense sector, seeing an RS line blue dot, but a strong uptrend from going back to last spring, a couple of bases along the way. And it is now testing a new potential buy point with an RS line blue dot.

40:33Alissa Coram:Yeah, one of the best looking things out there that's liquid and quality because not great earnings, but solid earnings. And you've got the RS line blue dot there showing that the RS line is at new highs as it's breaking out of that base, which is a good sign. It's a base on base. It's got a really nice shakeout week last week, support at the 10 week. You got all these things that are going for it with the exception of two things. One, the market is terrible, but stock doesn't care. That's what the RS line is about. But it's in this area that, let's just say, it resolves itself over the weekend.

41:15Alissa Coram:It's a possibility. I hope for humanity's sake and the economy's sake, the worldwide, I hope for everyone's sake that it gets resolved over the weekend. Well, this probably goes down. Now, shouldn't go down because they're still going to have to replenish everything and there's going to be more focus on defense. But the reality is the original, you'd probably have a sharp sell-off in energy stocks and in oil as well as the defense stuff. So it's still a, in my opinion, it's just building your watch list and then seeing. I think this is one of the best looking ones out there. Let's go to the daily just on that real quick.

41:57Alissa Coram:I'll be very brief. What you want to focus in on is how does it handle itself on days where the market isn't looking good? Today's action closing at the highs, getting support at the 21 day. And you can see even though it was too short for Patent Rec to pick this one up, but it was forming this little kind of flat base thing that it broke out of. And it's still this is not a broken chart. This is hanging in there. It's kind of forming like a little high handle-ish type of thing on this thing that's too small to be a traditional cup. But in the face of what's going on in the market, you can see this is being supported nicely.

42:38Mike Webster:Let's go to Cava. Was beaten down, but a notable turn on this most recent earnings report. Yeah.

42:48Alissa Coram:So let's go to the weekly. This has been a dog, right? I used to love it. Then I hated it. Always hated the food, but I'll eat there if I have to. But what's nice about this is that it's not a tech stock. It's not an AI stock. It's something else that is on its own. And it wasn't participating during the whole AI move. so it's it's it's different and you do want something that is different there that the market could fall apart in this one or just chop along and then something like this not necessarily a restaurant stock that is a turnaround but just something that hasn't been participating is more likely to have a shot in that environment is it viable right here no not at all is this something that I want to watch to see how it sets up up here?

43:37Alissa Coram:Yes. And that's what this is about right now. It's not necessarily, you know, finding things that are in position, but things that are showing signs of strength. One other one that we're weren't going to talk about was figs. Just pull this up because I was just thinking of things that aren't in people's mind. Let's go to the monthly on this one because this one has been a dog, like a real dog, but it's a little bit in a different situation than Kava that it was a dog and it broke that downtrend a while back. And let's go to the daily on this one.

44:16Mike Webster:And the fundamentals are now, it's showing up.

44:21Alissa Coram:That's the thing. Well, you always figure it out, even though we didn't talk about this, that acceleration up to that 900. And that's what I wanted to point out, that breakout of that structure there and holding in there. This now goes on my watch list. And it's, you know, they have scrubs, you know, unique scrubs. They took something that was just this generic commodity and they put their own spin on it. I think that's genius. So this is something I'd be looking to buy if it sets up. It's not set up yet.

44:56Mike Webster:Okay. And same for the Cava. Let's go to IMAX. Orderly pullback after an earnings-fueled breakout. Yeah.

45:05Alissa Coram:If we weren't in this environment, I'd be buying this today. A little mini upside reversal of the top of the, you know, pulling back into the top of the base in a gentle way. The RS line looks solid. And, again, it's something unique that's not wrapped up into everything else. So these are the types of names I'd put on my watch list. Great. Okay, let's go to your charts, Webby. Okie doke. Let's see. And I'm on my laptop, so hopefully this all goes smoothly.

45:37Alissa Coram:Okay, can you see that? I sure can. Okay. So this is the Bob Weir. Take a step back. Look at the bigger picture weekly candles. And we're going to go through a bunch of charts. We're going to go through them rather quickly because the market is terrible. but we want to kind of just paint a picture, let each one speak for itself. And then afterwards you kind of put them all together and figure out what you think of the market. When you look at this candle, terrible candle. Why do I say it's a terrible candle? Because you've got this really long top wick, meaning it traded all the way up there, but it closed all the way way down here.

46:14Alissa Coram:And you've got a negative body, meaning you opened here for the week and you close here. That's as bad as it can be. The only thing that makes it look not worse is the fact that we at least closed a little bit off the lows there. But this is a candle that you would expect it to go lower. That's what it's telling you. Doesn't mean it's going to, but that's your expectation. Oops. Sorry.

46:39Mike Webster:No problem.

46:40Alissa Coram:Okay. So here's the NASDAQ. Now, yes, it's a blue body. So that's got – how's that going for it? But still, it's a tiny blue body. Look at it relative to this week or this week or even this week or this week or any of the other ones. It's not saying much. And that top wick is just terrible. Looks way better than SPI because you had that shakeout and then close up over here. So it looks like it might want to go higher or sideways, but still not a good look. And then the IWM looks terrible, looks worse than S &P. and this is the one that's really bothering me. You know, global markets looking that bad.

47:23Alissa Coram:That's problematic. Okay, that's a VXUS. Now we'll go to the next one. This is just showing you the old regressions. And when we threw this out over here in early October, you can see that sometimes they can come back and bounce up and never get back into that old channel. Let's see how our recent ones look. So this one is dead. We were trying to give it some time over there because it tried to poke back up into this area, into the green area. And now this one is dead. And again, we talk about it every week. It's your regression lines. We're going 50 days starting on November 21st is our first anchor point.

48:08Alissa Coram:Our second anchor point is here. And I can't, it looks like, I think it's February 4th, but I've got something in front of it. So that's the trend. And your white line is what we call home base. And when you stay within the red and the green, you're still in that trend. When you fall out of it in a big way, then you say that trend is dead. This trend is dead. We're waiting for a new trend, waiting on a friend. Let's take a look at the composite. it. Okay, so this one died over here. We're waiting for a new trend here. We don't have one on the NASDAQ. Let's take a look at the IWM. That one is broken as well.

48:50Alissa Coram:As I said, everything's broken, but there is one that's not broken. Let's take a look at the EQAL. This one is actually, if we hadn't looked at the rest of everything else, again, EQAL is the the U.S. market, the largest 1 ,000 stocks, equally weighted. This is picture perfect. I just got to say, you know, if we get back above this green dash line, then that is where you'd want to gun it on this particular instrument with the assumption that you're going to get back through your white line because it wants it to go back to home base and then probably get back up into here. And so this is the best looking one.

49:29Alissa Coram:And it was looking really good this whole way. until the last few, until this week. But that's the story of everything, really. Okay, so here's the 50 % retracement. Still using the same old lines that I had from back in October and November timeframe. We're still in the Northern Hemisphere, barely. So that's positive. Again, just call it the way you see it. NASDAQ is back in the Southern Hemisphere. That's not where you want it to be in this context. You want it to be over the$22 ,959 and change, and it's not above there. Let's look at the IWM. We had some different ones on there. We were using the dates here more recently in January, highs and lows.

50:17Alissa Coram:And you can see you're back in the lower area, not where we want to be. Next is our levels. I've cleaned this up a bunch just to make it a little bit easier for people to read. But at home, if you want to put a bunch of extra lines on there, there's nothing wrong with that. It's just you got to balance out the noise. So the lows from this week, that's vital. And then the green up there, that's our goal that we want to get to because obviously the day, pretty much the day after this bad day, those highs, you need to surpass that. Because if we see some strength here, but we run out of gas there, that's more of a short than a long.

50:58Alissa Coram:Right. So let's take a look at the NASDAQ. This one, again, the lows from this week and then the lows from this area over here. So the 21 ,898, those are levels that you don't want it to break. And then, of course, that would be underneath that 200-day. So that feels like it would be a magnet to that. If I were looking at this, I would say, you know, you'd want it to test this level to see if it can really hold or not. but we'll see how that plays out. Let's take a look at the IWM. This one, I need to clean it up some more, but that one looks like it's in trouble. It's just going through, you know, all those lines.

51:41Alissa Coram:And our next line here is the 245.86. Okay, next, I know over the last couple of weeks, I was showing you my new indicator. I'm so sorry, I'm traveling. I'm out to my folks house out in California and it didn't, the indicator didn't get moved over to my laptop because I was, I messed up. But you can visualize this. This is all the FIB moving averages. So you've got your three, five, eight and so on exponential moving averages. And you just want to look and see what direction is that going. And right now it's going in the complete wrong direction. Um, next time I'm, I won't be on next Friday, but the following Friday I will be on and I'll have that indicator.

52:30Alissa Coram:And in fact, I did a webby rambles on, on this chart, um, this setup, the fib charts, as well as the indicator. And that will be coming out next weekend. So not this weekend, but, but next weekend. And I'm going to do, um, a full episode on each one of these charts. So people can kind of understand the methodology behind it. But this is terrible. This is not what you want to see. You don't want to see those moving averages rolling over. Let's look at the NASDAQ. Same thing there. Same thing with IWM. Same thing with basically everything. Here is the VXUS.

53:05Mike Webster:Like a melting rainbow.

53:08Alissa Coram:Yes, exactly. And I did change the colors to rainbows for fun. Now, your favorite chart, the Keep It Simple, just the 21-day exponential. And here you're looking, you want your low above it. Well, we don't have that. Our high is underneath it. That's really a problem. Same thing with the VXUS. Same thing with IWM. Same thing with basically everything, MDY, you name it. So let's look at our other ones. Just one sec. Got to share my other screen momentarily. Okay, can you see the Webby RSI? Yep. Okay. So with this one, you've got now, because your high is stuck underneath there, you've got this burnt orange.

54:04Alissa Coram:What is that telling you? It's telling you your high is a little bit more than one ATR, average true range, underneath that 21-day. You want to see a wall of blue like we had over here, and that is with your low above it. It's just an easy way to visualize that. But this chop here where you've had some blue, then nothing, some orange, then nothing, that's telling you the environment that we've been in. Let's take a look at the NASDAQ. We have a lot of problems there because we've got nothing but orange going on over there. Let's take a look at the IWM. And you've got that big spike up there. you can see that now the high is well underneath that is about 1.7 or so from that very problematic.

54:51Alissa Coram:Let's take a look at the VXUS. And, ooh, man, that is bad. We're almost up to three ATRs underneath there. And look back over here. That got up to 4.8 or so. Let's look at our Bob Marley. One, this is my daughter's favorite one. And I've got to say I'm so proud of my daughter. or I did ask her if I'm allowed to say. One of the reasons why I'm out here this weekend is she's doing a marathon, her first marathon. She didn't even run like less than a year ago and she started running and she's like, I'm gonna do a marathon. Why? Because she's a Webster. That's what we do.

55:28Mike Webster:Love it.

55:28Alissa Coram:Okay. So this one is measuring your low on the bar versus your highs and measuring that in terms of ATRs. How do you use this? You look at the general areas, the green areas, four ATRs within your high, yellow is four to eight. And underneath that, the red is more than eight ATRs. So this one, that's one way to look at it is just the area you're in. The next level is seeing where does it tend to get support? This one was getting support right around three ATRs off your high. So three ATRs here, about three ATRs here, a little bit less than three ATRs here. And now we're going through that. So it's telling you it's getting worse, but not terribly worse.

56:12Alissa Coram:If this were to get down into this area, then that's problematic because, you know, we got support last time about four and a half ATRs off of our high back in the November timeframe. So that becomes a very key level as you look at this particular chart. And the same thing with the NASDAQ. It just keeps inching lower, lower, low, lower, low, lower, low, lower, low. So that's the opposite of what you want to see. You want to see higher lows. And we'll take a look at the IWM. And this one is taking out those lows as well. So you hit low here, lower low here, lower low here, at lower low. Again, the opposite of what you want to see.

56:54Alissa Coram:And that's all she wrote.

56:58Mike Webster:For that segment, but then we're going to talk about some screen. We'll be fast. We'll be fast. It's okay. Yeah. Walk us through Webby. Some screening. Here's the first one that you built.

57:13Alissa Coram:Okay. So we wanted to have normally at the end of these, I just kind of just say, oh, do these screens. Yeah. I built these earlier. So it would be easier for everyone to build. So you, you know, you can always watch this, pause this and build this in market surge. Very simple screen. This This isn't for stocks to buy. This is for your watch list. So if we get a follow-through day, you would know where you should be looking. So what do we have here? Very simple. No ETFs. Some decent liquidity. $75 million volume. You really wouldn't want to go below$25 million volume. Those are my kind of two go-tos.

57:55Alissa Coram:Above$10. You can put that higher if you want. At least 3 % above its 50-day, at least 5 % above its 200-day. You could even increase that 200-day a little bit more to 8 % or 10%. 1 % above, it's 21-day. So it's above the long-term, medium-term, and short-term moving averages. This next one is a secret weapon. The RS line within 5 % of new highs, 52-week highs. The RS line at new highs is great, but it's very temperamental because it'll just be that one day. And so when it's near new highs, that's really what you're looking for. It doesn't always have to be at fresh highs. So use that a lot. That's one of my favorite things to use.

58:44Alissa Coram:Don't talk about it much. The next thing is the ATR. Can you click on that so folks can see that?

58:51Mike Webster:Absolutely.

58:51Alissa Coram:So that I have actually have a min and a max in there. So I've got a min of one and a max of eight. Why? The one, anything less than one, the stock is probably being acquired. And so it's just a little flat little line there. So it just saves a little bit of time. That's not the perfect way of doing it, but it gets close enough. The next one is eight, meaning that on balance, it trades less than 8 % in a given day. You want some of your screens to have things like that. the ATRs. Some of them you don't. You just want to see what's going on because there's some heat and stuff that you won't get if you put that cap on there.

59:29Alissa Coram:So there's screening is an art. And so you want to know how to look for it. ATRs will help a lot. If you're looking for quality, quality will have less volatility because people know what to pay for it. So in this environment, I'd be looking at really four and less of an ATR. Next thing, this week, we just don't want something that fell apart completely. So at least up or not down more than 3%. If this was giving us too many names, we would have raised that up a bit. Closing range, where did it close within this week's bar? 40 % or higher. That's kind of a key level there. So you only have 46 names.

1:00:10Alissa Coram:That won't take you, but a blink of an eye to look at. Let's look at the next screen. Okay. Same thing, no closed-end funds or ETFs. Lower this one down to$25, same$10. This one was more lenient with the 50 and the 200 ages above those, but a higher closing range. So there's a balance. You know, you raise some things up, you loosen some things up when you do screens. So the closing range on the other one was 40%. This one is 75%. The last one was for the week, couldn't be down more than 3%. This one, you had to be at least up on the week. And this one, we don't have a top for our ATR, just a low of one.

1:00:50Alissa Coram:I would run both of these. Don't look at them separately. Merge them into one list. Just build it, run the list, put it into, run the screen, put it into a list, and then run the other screen, put it into that same list and play through it. That way, if a stock is in both, you don't have to look at it twice. And that won't take you long at all to go through. and at least you'll see everything that's lifting up. I would also look at the Growth 250 as you should do every day.

1:01:19Mike Webster:That was fast. Great job.

1:01:21Alissa Coram:I know you've got a baby to go see. Come on.

1:01:24Mike Webster:Yeah. So any final thoughts or is that it?

1:01:27Alissa Coram:I just wish everyone safety in the market and in life. You know, just be really careful out there. This is a time where you can really get hurt. I mean, I had a really bad week. I'll just be frank about it. I got really caught in a lot of things on that bad day. And when you do that, there's this instinct to want to just try to make it back. We all have to fight that. And then when you're feeling that, which we all feel, I feel it, you just go, let me look at my instruments. What are my instruments telling me? Do I have a follow-through day? Am I above the 21 day? All these things that we talk about, or did I have a major upside reversal, something to trade against?

1:02:06Alissa Coram:Until you have those, everything else you're just doing, you're just hoping. And hope isn't a great strategy, especially in a risky environment. There's times to be risky. There's times to be very safe. This is a time to be on the safe side of things. I will say this weekend, I have the most special Webby Rambles on that I've ever done. I open up about things I've never talked to anybody about. And it's about my journey. this Monday was three years of on my health journey of kicking Diet Coke and kicking alcohol and a lot of other things. And I talk about it in finding your reason for doing that.

1:02:48Alissa Coram:So maybe you don't have a problem with those, but you have something else that you want to accomplish or a bad habit that you want to get rid of. I would highly suggest watching it. It's on my YouTube channel, Webby5150. Dropping tomorrow? Dropping tomorrow at 6 a.m. Central Time.

1:03:09Mike Webster:Great. Yeah, I watched your preview of that on X. Oh, okay.

1:03:13Alissa Coram:Yeah. Thanks. It's heavy stuff. And I used to be a heavy person. It is about my, you know, losing over 80 pounds in a blink of an eye and those things. I think people learn a lot from it. So it's... Really well done. Yeah, I hope people watch it.

1:03:31Mike Webster:Yeah. Great. Well, we're all so very lucky that you are so transparent and willing to share not only all of your secrets with the market, but all of these personal stories as well. You have so many people out there who admire you so much and who are rooting for you. So I just think it's awesome to have that YouTube channel for everyone to go check that out. So thank you. So hey,

1:03:58Alissa Coram:I know you've got to go see your baby, but what's the latest? Anything cool this week?

1:04:03Mike Webster:Anything cool this week? She's just getting better and better at rolling. So, yeah. Maybe she'll be a gymnast one day. Maybe. I don't know. Maybe.

1:04:13Alissa Coram:It was six months. Was it six months this week or last week? Or three months. Roughly a week ago.

1:04:20Mike Webster:Roughly a week ago. Yeah. Yeah. She's a cutie. We love her so much. Awesome. I will keep updating you. Anything notable? All right. Thanks, everyone, so much for watching. And thanks, Webby. Have a great weekend. And we'll see you back here next week, everyone. Investors.com slash IBD Live starting 10 minutes before the opening bell on Monday. Investors.com slash IBD Live for all the details on that. We'll see you there. And then we'll see you right back here Monday after the close.

1:05:16Mike Webster:Thank you.