Show: Power Hour Title: Goodbye, Pattern Day Trader Rule! | 5.4.26 Date: May 04, 2026 Runtime: ~63 min Video ID: 5MsSphuPT1Y URL: https://www.youtube.com/watch?v=5MsSphuPT1Y ============================================================ All right, good afternoon everybody. Hope you're having a great day. Let's go ahead and make sure you all can hear me. If you would please type the number one in the chat box so I know that you can, I would greatly appreciate it. Morning Helen. How are you? Hey Patty. Hey Brenda. Good afternoon. Afternoon there, Jim. All right, looking good. Yep, we'll get that in a second. and always volume first and I'll go for camera. Too many technical things all at one time for me. Uh, let's see. Let's turn that puppy on. Let's see if we could find it somewhere. All right, there it is. Let's open her up. All right. It's terrible. My top monitor blew out. I have not had time to even find out figure out what monitors I've got on here. So, I want to replace it with the same ones. And now putting it my tools over here become a little bit difficult uh for me to to be looking over to that side monitor instead of just browsing my eyes straight up in the air. So all right, drawing tools are started. Jim, I appreciate. Morning there. Uh Ed, how are you? Uh as we get started, keep in mind everything we look at is for education. Nothing is meant to be advice or recommendations. If you find something you like, anything, make sure it fits your own personal risk profile and risk tolerance. All right, but so here's our agenda for today. We're going to go through our follow us page and we're going to look at trades from today. We'll go into economic reports. Uh we'll look at a review of the market, uh upcoming trainings, uh our weekly training topic, and then your stocks and review, which is where you get to ask me questions on candidates of my thoughts, where I put lines and if I like it, don't like it, how would I take it, the trade, and so forth. I just can't answer questions of should I buy or should I sell it. Those are illegal. Uh since I am not a licensed uh well they call them professionals which doesn't make any sense to me. Professional what? Um doctors and professional lawyers and professional stock brokers. Uh maybe um maybe. So uh here's our follow us page. All of the various uh social platforms that we're on, our blogs, our newsletter is all listed right here, guys. You can see all of that day in and day out right there. Uh today's trades, what trades did you do? They don't have to have been from today, Thursday, Friday, whatever it was. Drop those trades in. Whatever it is that you did. Uh we got a little smaller group than usual here today. So, we'll uh we'll see. We're getting closer to summertime is what it is. But Patty said, "Home Depot, two entries, one contract each time. Up $250." Great job. Great job, Patty. I love it. One contract. It's just one trade away, guys. One contract is all you need. Brenda said 15% on SPY on Friday. Great uh great setup there uh for you, Brenda. Fantastic. Uh let's see. I've got a couple from today, guys. Some good, some bad. Uh nothing evil. Uh which is really good. So, just in alphabetical order, crowd strike, we opened up today, had a run up above that 462.81. So if we go to the fiveminute candle, there was the breakout. There was the retest. There was the bounce. There's the entry. Now you would have set I I set exits to be just below that 47743. So probably about 4756 somewhere around there is where my target would be. We didn't get anywhere near there, but we did have a micro day trading exit. So as we bounced off of that 463, we're in at say 464. We move up, we start to roll over. We're out at 468, 469. So, for a $5 move, uh, fat, dumb, and happy is an understatement. I'll take a $5 move in 20 minutes any single day. I don't need it to be all of it. I just need it to be as best as it can. Uh, the depot of homes, they were bearish. So, we would take this as an aggressive trade. Why? Because the S&P 500 is bullish. And I don't mean that it's up today because it's not. It's down a little bit today, but we're in a bullish bias. True bullish bias. All the moving averages are in the right order. So, what does that tell me? What does that mean? Well, if I'm going to look at taking a Home Depot, I want to take a bearish trade on Home Depot. Now, we got a gap down below that three just above the 32075 and a fail. Right? If we scrunch down 311 is support, but we ain't been there before. We've broken through one, two, three, four times and the lowest we've gotten. Go figure, guys. Right there about that 315 level is the lowest that we've gotten. So, why do I want to shoot for 311? I I I could try. I could do a trailing stop maybe if I want to push the envelope a little bit, but I know that we easily can go to 315. How do I know? We've been there. What's the exact low here? Uh 31531 is the exact low there. Today's exact low 31525. We've been there, right? We're back at it now. So, we go over to a fivem minutee candle. What does it show us? We broke down. We retested. Closed right here. Fib line is at 32079. We closed, so call it 32080. We closed at 32043. So 35 cents away, 33 cents away, something like that. We tested it. We failed. Thank you very much. We even got another opportunity right here. If you missed the first one and the rain, rain, rain, she came down, down, down. Right. Did we hit our Well, 3:15 is what was it? 31530. Did we say 31530 is support? So if you just go a dollar above that, it's 316 in jingle. 316 half 316 quarter is probably where I would set it at. So we hit it. We're out of that trade. Done. Again, three $4 move on the stock. Very nice. Uh anybody else have any other trades? Drop them in. Any trades that you did today or again they don't have to be today from the end of last week is okay. Uh Reddit. So, Reddit broke above today, right? And what happened on Reddit? Let's go look at a five-minute candle. It gapped up and ran up. Then it pulled back and bounced. Okay, so I got nothing on a fivem minute, right? Well, that's not true. I might have had it there on a fivem minute, but um so where did we close? We closed here on that candle at 167 half. support is at 1607 e equal, you know, even. So great. And then what happened? We moved up a little bit. We never really got the pullback. So we're going to look at a one. We're going to look at one minute candles on Reddit. And let's see. So this candle closed right here on that closing candle at 16754, right? Our support line was one. You know, the the chart's moving because the stock's going further down, right? So, we said close at 167. We'll call it 55. Support is at 16686. So, we're about 70 80 cents away. If you're going to take the trade, this is the candle to have taken it on. I did not take this one. Uh would it have done okay? You're in at 168. Uh you're out of this trade at 17071. somewhere in there. So, it's not horrible, excuse me, whatsoever, but didn't take it. But it was one that I was setting up. I just didn't get as close of a close as I would have liked on my fiveminute candle there. Right. So, late typing, no problem, Trip. Um Jim said, "Home Depot looks like the H pattern, but didn't get to the 618 or the 50." Darn. Exactly. So, if we go back, go to Home Depot. So, we we got up above the 382, but this is what I call a false H pattern, right? And for those of you that are not familiar, I haven't really mentioned it in quite a while, but here's the the standard move down and then we look for the move up. Ideally, it moves up to the 50 or the 618 and then it rolls over, right? So, yes, if you look at it in proper English, oh, that's horrible, Rob. That's what happens when you draw with a mouse. In proper English, that would be your H, right? In Fibonacci language, this is your H like that, right? And then of course you have an upside down H where you move up, go back and do that. Okay, so this H, you may look at that and say, "Boy, that's pretty ugly. That's the prettiest letter in the alphabet." It's actually the most profitable letter in the alphabet is that H pattern. Okay. So, when it only makes it up to the 382 or not to the 50 or the 618, which are required for an H pattern, then it's considered a false breakout or a false H pattern. Now, did it work? Yes. Can you get it to work consistently? I can't. And I have tested it with no exaggeration 70, 80, 90 times that I've run tests on it over and over and over again to see if I can get it to work, and I can't. Uh, we had a student and his cousin, they ca, they lived in New York and he came in in one of the live events I was teaching and asked, "Hey, have you ever looked at the failoff of the 382 and I said, "I have, it doesn't work." He goes, "Man, we're killing it right now." I said, "That's awesome. I'll look at it um when I get back and I'll do another test on it, but the next time I see it, let me know how it goes." Come I come back to New York. I didn't really spend any time investigating it. Not because I didn't want to. I just got busy with other stuff. He the the one guy didn't come back, but his cousin did. And I said, "How'd your cousin make out with the 3A2?" He goes, "Right after the workshop, it stopped working." So, yeah, it's my problem with it. You may get a couple of weeks, couple of trades off out of it, but it it doesn't hold consistently. So, trust is a critical component when you're trading the market. Can I trust my system? If I can't trust it, then what am I doing? Am I going to actually take that trade or not? I won't. Uh, let's see. Trip said got into two contracts of Micron at the open then fought with Amazon to get 21.8% in 8 minutes and I got third 37.2% off the Micron in 13 minutes. Okay, so 8 minutes 13 minutes two contracts. Very nice trip. Everything running up to be uh fib numbers. Okay, let's see if you can't get your percentages down to Fibonacci levels if you don't mind please. Right. Good job to everybody. Congrats. And some some others have dropped in some congrats in there as well, guys. So, congratulations to everybody. Roman said, uh, micro Tesla trade at 20%. There you go. Uh, congrats to all from Brenda and others. So, yep, that you're right. Good job, everybody. Congratulations. That is awesome. Trip said 21.8%. So, I got one. Okay, there you go. 21% is close enough, right? Close enough. We'll drop the the decimal at the end. 21 percentile or 21. Good job, everybody. Congrats. I love it, guys. You know, this is not a bragging session. That's not what this is meant for. This is meant for you that is sitting home by themselves cuz trading is a dang lonely business. And I know as a brand new trader, I had nobody to talk to. No one. None of my friends dealt with this. My wife had no interest or uh under no understanding is what I meant to say. And certainly no interest in discussing with me. You know, look, when when I'm talking to her, and this is the expression on her face with her eyes looking up, right? She's listening and she's being very polite about it. and and you know, she'll ask a few questions every once in a while, but it's it's not really her thing. Okay? So, I had nobody, right? So, being able to come here and see that others besides the coach, right, besides me are able to do this and and come up with some winning trades. I'm not asking anybody to show that they're funded trades. They're all non-funded trades. We only do non-funded trades. That's all we talk about here, right? Why? Because it's legal. It's legal. There are massive, massive, massive things about legalities when it comes to showing trades. As an example, if somebody shows you that they did a funded trade from one of their customers, their students did a funded trade, they're required to have on on record the last two years of their brokerage accounts, their tax returns, some bank statements possibly, but two years of of brokerage accounts for for sure. How do I know this? because company that I was with had an investigation from the SEC and they told us what was acquired if you're going to use somebody's testimonial. Basically, you got to prove that the money was still there. Yeah, you made money today, but that doesn't mean you kept it, right? Is is the way the SEC looks at it. So, um we everything we talk about non-funded, Diane said. And for new traders, we have to be extremely careful who we talk to because of the negative people. Yeah, Diane, that is critical, right? I mean, I I told very little people when I first got started that I was going to do this. And as I started telling friends and family, I got all the negativity in the world. It was brutal. The last person that I told was my dad. I figured if anybody's going to support me, he would. And he did not. Um, and I won't use the colorful language that he did on the phone with me, but it had something to do with crawling through the phone, ripping off my head, and wonderful stuff like that, right? Why? Because the person next to us, our next DOOR NEIGHBOR, LOST ALL HIS MONEY TRADING THE MARKET. Come to find out, he gave 10 grand to a futures Forex broker, I think it was, and the forex broker did a churn and burn. So churn and burn basically is trade just to get commission costs up. Spend, spend, spend, spend, spend on commissions. So you have no money left and they brought in 10 grand of commissions. They don't care if they lost you because you're never going to come back again anyway. So that's what happened there. That's not what we do, right? We're not about that, guys. If you look here, this is here's last week, right? From Wednesday, Thursday, Friday of last week, these are one contract trades. One. So, when someone says to me, I can't do this. You can't not do this. Four of these trades are on Friday, which means these options all expired the same day we took the trade, which means they were the cheapest that they could possibly be. The day we took the trade, it came in on a Friday. Okay. AMD was our home run for the week or at least the second half of the week at $959. One contract. Amazon was number two. Uh, and that was $452. Goldman Sachs was $280. Home Depot was $351. Oracle was $210. $2,254. And as impressive as you might find that number, don't. And what I mean by that is this. This is what I want you to be impressed with, right? $55,829. That's the first quarter of this year. Quarter and uh well, actually four months, I guess, right? So, it's the first four months of this year into May 1st uh of trades, right? So, overall, are we doing okay? Yeah, it's not horrible. It's not horrible. We've we've done okay. All right. We've done okay. Is this a good number? Yeah. Do do I expect it to be this, you know, for two or three days? Mm- Nope. Give me 7 or 800 bucks over a two or three three day period with one contract traded. Yes. And are any of these managed? Meaning I'm using micro day trading rules. So I'm watching it closely. All my experience, three decades of doing this, I'm watching it. I'm making an internal decision to get out. And you don't know what that is because I've done it and you can't. No, that's not what this is. This is me sitting back going, you know what? We have a rule and the rule says if we look at a stock, doesn't matter who it is, Home Depot, just happens to be what's on the chart, right? If we got in this trade today, what would that have said? My target would be somewhere above this support line and my stop would be somewhere on the other side of resistance. That's it. That's it. Those orders go in. If they're not hit by the end of the day, we're out of the trade at 3:45 p.m. Eastern. Done. We just close the trade at the end of the day, no matter what happened. So if it wiggled around all day and the option was at $4 when we bought it and ran up to 678 $9 and then it dropped from 9 to 8 to 7 to six by the end of the day we got six whatever it is whatever it went to the end of the day it doesn't matter we don't take the highest oh I really would have gotten out there no you can't do that you can't do that you've got to look at you've got to look at your trades in with two words in mind and they're really the same word with an additional word on top of it. And what I mean by that is you've got funded trades and you have nonfunded trades. There's no practice trades, there's no paper trades, there's no white money trades, there's no green money. It's funded and non-funded. Everyone is a trade and you need to treat it that way. If you do not treat this as serious as serious can be, then you're not going to get the results you want. Treat it like a hobby. You will get hobby results. Right? Every one of you need to consider how do I step my game up this year? How do I step my game up and get better at trading? And this would be part of it. You treat everything like it's the most important trade in the world. But Rob, I'm just doing one contract. It's on an option I paid two bucks for. Do I really have to treat it that way? Yeah. Uh-huh. Doesn't matter what you paid for. It doesn't matter what it costs. Doesn't matter how big or small your account is. Every trade matters, right? If you just become flippant about, well, it's it's practice money, so I don't care. Well, it's too late to start caring the day you put real money in because you're not going to have the same emotions when you place that trade. And I hear it all the time. My emotions are different when I do funded trades and non-funded trades. Yes, they are. And if you treated it that way, practice versus non-practice, right? Or you did all practice trades. Ah, practice where it doesn't count. You get to do it again, right? It's okay. Don't worry about it. It's practice. No, I need you to lament over that. Why did that trade go bad? Analyze that position. Review it. Look at it. Determine, did I do it right? Oh, but I did everything perfectly. I did everything perfectly, but the market went against me. So, is that a good trade? Yes. If you followed your trading system, the market went down. Guess what? You won. You won. And I don't mean you won money or you made money on the trade, but you you did the trade you were supposed to do. If we look uh Let me see if it's going to open up. Okay. Oops. So if you look here and let's say that your reward risk, you're looking for a 2:1. You're looking for $2 of reward for every $1 you willing to risk. I don't know why I put both of those in there. Uh for every $1 you want to risk. Okay, let's just get rid of this. Pretend that doesn't exist. Okay, for every $1 you're willing to to risk. Okay, so what does that say? Let's say that you do this type of setup and you find out that your winners, right, are six out of 10. That means your learners or learning positions is four out of 10. They're not losers, they're learners. Every one of these, every trade that goes against you, you should learn something from that trade. Now, if you go in with this and say, "Okay, I got 10. Six went in my direction, four went against me." There's 10 trades there. You know that when you hit enter right now on Microsoft, Apple, Google, Home Depot right now, there's a four out of 10 chance today that that trade's going against you because you've got a six 60% winners and 40% that do not move in your direction. Well, if you know that going in, then what's the big deal, right? You did not go out today for lunch and lose $18 on lunch wasn't a loss. It was a cost. It's a cost of doing business. And you knew that when you went out to go get lunch. You knew when you took this trade that there's a four out of 10 chance that it's going to go against you. Four trades out of every 10 you do will go against you. The key is maximizing your reward and minimizing your risk. As long AS YOU CAN DO THAT, you get to stay in the game, right? You can't win at this game by just taking small losses over and over and over again for 99 trades out of 100 ones go against you and one trade is a winner. You can't say in this game with that. I don't care how big the winner is. That usually won't make up for 99 that went against you. Okay? So, you've got to be diligent when looking at your trades that this is what you're looking for. This segment of showing the trades is to get you to start doing the trades. You know, we're having class on next Monday. Make sure you're doing some trades on Monday morning. Make sure you're doing trades every day if you have the opportunity. If you have to place them at night, place them at night. You got If you can put them in in the morning, put them in the morning. If you can watch the market when it's open like myself or Trip or many others, then watch the market when it's open. And now place your trade and look for the results. track what happens. You'll get a percentage of winners versus a percent of losers. We usually wind up in power option plays at about 72 to 78% winners by the end of the year. It's just where we end up. How do we start our year? Strong every single year. We start strong every year. We get into the mid 80s every year on our start. Why? We we probably pull in 40% of our profit the first three months of the year. It's just the way it works. In many years, August is a horrible year for us. And then there are years that August, two years actually in a row, August was the most profitable month of the year, but it's not the norm. It's a postcoid norm maybe, but not not the norm. Okay? So, that's the the reasoning behind this segment, folks. So, don't skip on this. Participate. Get your trades out there. Get involved. Watch what others are doing because the opportunities are there if you just know what's going on. Okay? All right, let's go ahead and go back into the presentation and let's go take a look at economic reports. So, we're going to go over to Forex Factory and we're going to uh let's see, open this up. There's nothing today, at least nothing that's red or orange. Um, tomorrow we've got ISM, which is at 10:00, which is purchasing managers index. big report we used to file on with one of the companies I was with and when Masco used to file on some of the purchasing managers index stuff that we did um for for what we purchased what we bought and I used to say to my purchasing manager the main guy Glenn I used to tell him every all the time day every week he heard it out of my mouth one time or another we make a profit in this company with when we buy our raw materials not when we sell the product because if normally you can buy this widget for $10 and this is what we're going to this is the raw materials to go into a product that we made. And and this is the all the raw material we need. This piece of steel or whatever it is, we can make it from this. We're going to bend it, twist it, paint it, put some holes in it, and sell it. Right? We buy it for $10. That's the normal price. But if I could find a way to buy it at $9, I now just saved 11% on that purchase on the purchasing price, which means I can reduce my co my selling price. Not the full 11%, but enough to get underneath my competition where I can bring all the business in. So, how good of a job did we do as the purchasing manager, you know, with purchasing with buying raw materials? And I don't mean to the extent of let's go and get the biggest discount possible by buying four years worth of the raw materials. That's a no no, right? We had a conbon system that basically kept us at two to three months of raw on certain things, a little bit longer, a little bit shorter on others just based on minimum quantities, how often we used it. It was a product we used, but not as often. So, we might have to buy more just to even be able to purchase it. They wouldn't sell less. you had to buy a thousand and we used 100 a month, you know, or 500 a month or whatever. So, we might have had more materials laying around. A PMI is a big report. Uh, Jolts is job openings. That's coming out tomorrow 10, which means the market is open, which means if you're placing trades tomorrow and the market's open, you place a trade at 9:30, these reports get announced at 10:00, they could have a dramatic effect on your uh the movement of your position. Not to mention if they have an effect on the overall, if they find out that certain things, you know, get highlighted in there uh certain sectors and so forth, it could affect it. So, be cautious if you're trading uh tomorrow before 10. New home sales comes out tomorrow uh at 10:00. Also, the Fed data is out. I'm assuming it's going to be 10, but but I don't know. It doesn't say it here, but I'm assuming it's 10:00. It's orange. I don't care. We are not in a housing bubble or a housing bust right now. Yeah, interest rates came down a little bit. Nowhere near enough for people to buy the houses that they want to buy or looking to buy. Nowhere near enough to get the inventory off of the books. It's starting to sit a little bit longer now out there. So, it's getting a little tougher. Um, we've not bought anything new. We're waiting for rates to come down. We've not bought anything new. Um, those that are not selling are not selling because they can't afford to. And what I mean by that is they're locked in at a, you know, a 4% interest rate when they bought their home. if they sell their home and go to buy a new one, they're going to be at six, six and a quarter depending on, you know, 15 30 year how good credit rating you have and all that fun stuff that goes into it. They just can't afford that, you know, that additional increase in their interest of 50% or 30%. It's impossible. They just can't do it, right? So, uh I guess if you're paying four and now you pay six, it'd be a 50% increase, right? You were paying $4 now you're paying $6. Yeah. So, $2 is 50% of four. So, um, watch the reports tomorrow. Wednesday, we've got ADP non-farm payroll. It's 8:15. Unless you're pre-market trading, it doesn't matter. The news will be out already. It'll react at 8, uh, 9:30 when the market opens. Friday, we've got a bunch of reports. Uh, payroll, non-farm payroll, unemployment rate, all big, but 8:30. 10:00, consumer sentiment, inflation expectations, Fed reports, no question, Fed reports, but probably not something that's going to move the market very much. Uh the Fed themselves are kind of lame duckish until uh Walsh Walsh this guy the new guy that's coming until he takes over. Um the you know pal is kind of lame duckish right now and the Fed is putting up a nice strong presence against the new Fed coming in that we're not going to take it. We're not you know bending over wash. Yeah. We're not bending over and taking it from you when you come in wash. So if you like it great. If you don't too bad walk away. that, you know, we're not going to just bow down to you because you're saying drop rates and and that's the consensus is that Trump will control that and be pushing the agenda of I want lower rates. And he's not been quiet about that. He's been abundantly clear that he wants to. But what president should not say this is what I want. Well, hopefully they all figure it out someday. That'll be a great way to run a country. That's your boss that you hate because they can't make a damn decision. That would be the same thing as a person going, "Well, let's see how it all works out." No, I don't think so. Right. And then down at the bottom, Monday D Fed share nomination vote. We'll know on the 11th, May 11th, we will know whether or not he is uh confirmed or not. All right. And we'll see. Okay, let's bring that down. Let's go look at the market and see what's going on. Uh Brenda said, "That's what checks and balances were created for in our constitution." Absolutely, Brenda. Yep. Yep. So, let's go look at the S&P 500 and see what the heck is going on. So, Thursday of last week, all-time high Friday. And by the way, all-time high on Thursday, alltime closing high on Thursday. Friday, all-time high on Friday, alltime closing high on Friday as well. So, um we pulled back a little bit from where we opened, but overall from where we closed on Friday, we were up. And was I surprised to see this? Absolutely not at all. Actually, I'm not. We had a great run, right? So, here is uh Monday, right? So, Monday we hit an all-time high, pulled back into Tuesday. Wednesday, we were flat. Thursday, big move. Friday, big move. Okay, you're going to take some profit at the end of the day. Period. The end. People are locking some money up before they go home for the weekend, saying, "We made this during the week. Let's put it away and not worry about the straight of Hermuz or Ukraine or Israel and whoever they're fighting with and China and Pakistan and what why worry about anything that could happen globally? Let's just put the money on the side. So you get some profit taking on Fridays which is pretty much a standard thing. Um yeah, it's kind of that evening star Brenda. Um, you know, we'll uh we'll see how the the candle pans out. We can't call an ending yet because we're not closed, but I love that, you know, I left this recent swing high in there, and we came back and played with it very, very nicely today. So, if we look at the S&P 500, what what are we looking at for targets? So, I'm looking at that 71.48 is our next downside, and 7260 is our next upside. Right? So, we've had decent move. If we go back and look at a five-minute chart, you could see that even Friday, we made the move up and we it was pretty clear. You've got uh lower highs and lower lows all across the board. Lower high, lower low, lower high, lower low. Okay. So, overall we we had a great little channel, you know, trend set up in there, here, and here, right? And actually, let's do it this way. Let's come off this swing high right there. We're going to swing out to the right. You're going to come down and hit as many tops as you can. That would be great. I'm hitting three, but can I get a little bit more in there? Yeah, I sure can. I I like that a little bit better because I get all of them. Okay. Now, we're going to duplicate this line and just drag it down. Let's hit this off of our supports. I don't need to hit as many of them. I'm not going to move it up to try to capture this one. Right. If we duplicate the line one more time, you can see right in here, we kind of rode, not exact, but we kind of rode that same angle down. Right from in here, if we take this same line and bring it down to where we opened, look at it here. Support, support, support, support, support. Gap fill. Of course, that gap fill came in on two candles. Boom, boom. Right there. We filled that gap all the way down. We're done. Okay. So, we had a phenomena. I'm going to take those off because I don't want them I don't like those trend lines lingering on uh, you know, minute charts, five minute, one minute charts. um because then they just extend out and you get these crazy lines that go on for years uh that show up somewhere. So overall uh on the S&P 500, we're doing good. We're at all-time highs right now in that area, that general vicinity. I don't care if it's exact or not. I don't need it to be. So I'm not too um not too concerned with it um at all. So, um, all is, uh, all is good from the S&P chart right now. I like what I'm seeing. And our topic, we'll talk about where we go next actually for our teaching topic for the day. But, and there in lies a problem, right? And you'll see when we get there, we got nothing up there. Nut and honey. There's nothing up that high. So, what do we do? Ah, I'm going to show you that in a few minutes. How do we decipher this when we don't know where it's at? Uh Jim said S&P daily chart fib numbers are 6765 10,946. Um so 6765 is this black line right here. Right. Jim is talking about 10,946 which is way up here. 10,946. Draw the fib line between these numbers. The 882 is 7258. All right. So, you just Let's do that though, Jim. Let's try drawing a fib inside of here. All right. So, you're talking about the 882. All right. So, let's unscrunch. Um, let's rescrunch a little. We're going to have it's going to be a big line. So, it's going to be this one that's all the way out here. So, the 882 I don't have on here right now. So, we're going to add an 882. We'll do it in green only because it'll stand out a little bit more. Right. So, there's the green. It's right there. The 882 is the 7250. Uh, did I do something wrong, Jim? Oh, maybe just No, it's the way I drew it. I know what it is. It's the way I drew it. So, which way did I just I drew that from down here. I drew that in a bullish direction, Jim. So, did you draw from top down? Did you come from this line down, Jim? Let's see. No, I don't know. I'm not sure. Jim, you're talking about a confluence at the 7258. I had 7260 at the 31 negative 31136. So, okay. What what Jim is basically talking about is taking a major, you know, the the super fibs that we've got between 6765 and I can't even remember the other one yet cuz it's too far away. Uh 10,946. that other black line I was holding on top drawing a fib between there and looking for confluences in those levels from 6765. Yes, you drew from 6765 to 10946. So why did my numbers come out different than yours? But draw it the way that you did. Why did it come out? Why did I get a different answer from what you're you're suggesting? And so the 882 is down here. We don't have it in there yet, but let's let's try one more time, Jim. We'll give it one more shot. Let's grab the green 882 again. It's not usually what I use, but let's use green because it'll be easier to stand out. All right, so I got 7260, 48, and 7244. Okay. So, we're we're right on top of each other. Difference of $2 and 12. Yeah, there you go. So, it's very um 7260 7244. We got about $12 uh $16 in there. Difference between there, but it's a great confluence over the negative 136. I got what you're drawing there, Jim. And that's what we hit up on Friday as our high into that. If we took it as a blue zone, right? If we took this as a blue zone, right? We ran into that and we failed off of it, right? Yeah, no, you're right, Jim. That's why I wanted to draw it to make sure that you're right and not looking at something else, right? Always good to check it. And folks, this is Look, you see what Jim is doing? He's opening his mind up to say, "Okay, I see all these lines on a chart. Where's the correlation? If I'm looking at a connection between this line and this line, what does that tell me with where price is today, where price is going, and so forth?" And that's part of what we're going to talk about in in our topic for today, our education topic for today is how do we look at the chart and say what's next? Yes, I've got Fibonacci levels. I've got fib lines drawn. And are they important? Yes. Can we make them more important? Yes, we can. Are we going to see what jumps out off the charts at us? Oh, yeah. Are we ever? Are we ever? All right, let's see. Back in. All right. So, inner circle coming up May 4th, which is um tonight, uh 7 o'clock. Quarterly is the 8th and 9th, which is this Friday and Saturday. Uh Mastering the Trade is tonight. Um for those of you that empower option plays, you'll automatically be registered. Mastermind group is tomorrow. We got our education uh you know, our core training continuing on directional trades. Uh trading you is on the 11th and Trade Watch alerts Q&A is on the 14th. POP, Covered Call, E- Mini are all on regular schedule. Power Hour, uh, Trading Coaches Playbook are on regular schedule. And then you've got Wall Street is lying to you. It's coming up on the 6th, the 7th, the 12th, and the 13th. Do not miss out on those classes, guys. Um, yeah, do not miss on out on those classes, guys. You will not be disappointed what you see there. All right. Jim said, uh, we are at highs now. Uh, I went to fib numbers above to make to make my lines. Exactly. Right. So, Wall Street is lying to you. And the weekly training topic. So, this week I want to talk about finding the next targets when the S&P is at all-time highs. And that's where we are now. And yes, realistically, all we need to do is say, where's our next target? Well, I see 726048 is my next target. It's right there. It's plain as day. Like the nose on your face, right? What about above that? 73 7345. Yes, we've got fib lines up here. And I am not saying we should discount them at all. What I am saying is how do we strengthen those lines? How do we make this better? This is a tool that could be used for markets or individual stocks when they're near all-time or highs or all-time lows. It works better on highs because you've got more room to move. Uh lows can get a little tricky sometimes depending on where a stock has been in its history. Especially if you took a stock like Microsoft that split a million times. you know, what would that look like? Um, you know, if you take Microsoft and you go back historically, um, actually, let's, uh, let's go here to Microsoft. Life is good. $440 stock, right? But what about back here when the stock was trading at $7.30 because of all the splits they've done and so forth, right? Split, split, split, split, split. Um, it it makes it a little bit complicated to start looking at this and say, "Okay, we're next, right? We're next." So, let's make this a daily chart again. All right, let's bring it back in. Let's go back to S&P 500. I don't really like to change this because they're set on uh actually they're not supposed to be daily. They're supposed to be weekly. There we go. That's better. All right. They're set on them and I don't like to change them because it it makes it too easy to to make mistakes there. So, when we look at the S&P right now, let me just drag the the fib out a little bit. Let's get a little bit more time in here. Let's unscrunch so we can see the entire fib. Uh it's not S&P though, it's Microsoft. Okay, there we go. Okay, so once again, we've hit a couple of highs, you know, all-time high, all-time high, all time, all time, alltime high. Five or six of them in the last two weeks, right, alone. So, um, but now again, I could just say 726048 is my next resistance level and we go off of that. But instead, I want to use a tool, and I've shown it in here before. I want to use a tool to determine some levels. Now, I'm going to preface it with this. I am looking for wherever the stock wherever the run started on the S&P 500 right there. That swing low in this case a swing low right is where it started. The swing high and the lowest low the stock has gotten from that point. Okay? And you want it over a reasonable time. You don't want this to be three years later and you made this move all the way up, you know, 2,000 points, you drop back down, you're back up 4,000. We don't want to do that, right? We're looking for the most recent lowest low it has made after running into that swing high there. Okay, that we drew the fib off of. So, from the one to the zero and the lowest low. And we're going to use the ABC tool. Now, in Omega Charts, you'll see it right here. It's got these three lines with the V on it. Fibonacci extension. So, we're going to come down here to this lowest low of this fib of this stock right here. And you're going to click. And now if you see my mouse is moving. It's going straight up and nothing's moving on the chart. But if I go back and forth, you see that little horizontal line is moving with a price point. It's got a B on it. I'm going to put that right at the swing high there. And I can't put it anywhere else. As if I move my mouse down, it still stays off of the wick. I cannot change where it goes. So on the first one on a when I do this, it's going to snap. Even if I try doing it right here, it's going to snap to, see, I clicked on the body on the opening price. Watch. See where my mouse is? I'm going to click now. Left click. Nothing happens till I move the mouse. Oh, look. It snapped it at the wick. Right now, when I come up, it's going to snap to the top of the wicks, the highest highs or the top of the body if there is no wick. Right? Whatever the highest high of that candle is here, we're going to snap to the highest high. So, we went from lowest low, highest high, and now we're back to lowest low again. And that's going to be this one right here. We had a slightly lower low here than we did here. All right. So, 5020 4655 slightly, right? We're going to click on that. And when we do, there are three numbers that come up. And I'm not going to I'm not going to open the chart up yet. Let's do this. I want to sort by what I'm using. So NA N A NA those are the three lines I drew the ABC right and you can see ABC they're labeled. Okay. Then you've got a 236. Write these down. Screenshot it. Whatever works for you. You got a 236. You got a 618 and you got a one. Each and every one of these has importance to it. This indicator predicted within I think it was $8 the high of the S&P 500 at that time. the high from, you know, seven months before by using this tool, right? We have an idea of where we go to next. When I say the high, I'm not talking about something that's happening next day or week. We're looking at bigger picture, but we've got a goal. We've got a target. And can news have an effect on the technical part of the of the market? Yes. And it's a very easy analogy. You go to the doctor and you say, "Doc, I'm here for my annual checkup. How am I doing?" Doc looks you over uh says, "Okay, fundamentally you look good. Your head's facing forward, two eyes, two arms, two legs. Your you you don't have a thumb coming out of your nose or anything. Fundamentally, you look okay. Let's go run some tests. Let's do some technicals on you." They do blood work and EKG. All that comes back. The doctor goes, "Man, you're in great shape." So, fundamentally and technically, you're in great shape. And then you leave the doctor's office and you get hit by a bus. That's news. Doesn't matter what the fundamentals and technicals said, right? War starts up again in the Middle East. They blow up a couple of ships. They We didn't realize they got missile launchers that go under the ground, come up underneath the the the straight of her and shoot straight up at the ships and they can attack anytime they want from inside somebody's apartment building or whatever, right? And all of a sudden, this great news that we're seeing happening and it's all gone. Okay? So, this is technical, right? It doesn't mean that there's nothing that will do that will thwart this or make it not work. Anything could happen. Anything technically could happen here. Okay? But understand, we need to have a reasonable expectation of can we get there and if so, where, right? So, what are we looking at if we go from this swing low to the swing high? So, wherever the fib started to wherever the fib ended down to the lowest low. Now, I would have liked this in an ideal world. I'm down below the 236 into the 382 at least, but realistically down to at least the 50. That would be my ideal because then my C, my A, B, and C are on the screen. My D I'm going to share with you in a moment. You're going to see D in just a minute. It doesn't call it D, but it is D. It is the D uh in this setup. Okay, so the 236 is the very first line you see. It is all the way to the right. I left this fib a little bit short for a reason because the lines on the far right are going to jump out. The 236, the 618, and the one, they're going to jump out at you. Okay. Now, this 236 says, and I quote, "Close above the 236, retest, and bounce." And you now have a trigger that says, "It is time to go long. We believe we've moved far enough from this low, 23.6% 6%. We've gotten through. What is 236? Can somebody please tell me what 236 represents in one word? In one word. And you can just put the first letter if you want. I don't know what you mean. If you do in one word, what does it mean? Yes. Yes. There you go. Excellent. Keep going. There you go. Perfect. Man, you guys type fast. I would do the eight the the letter. Sorry. Damn it. H is what came in. Hesitation. 236 is hesitation. So, we are hesitating two days in a row, no less. We're hesitating at this 236 level. Why? Why? Well, first off, what is the 236? What am I looking for? In an ideal world, there's a confluence with something from my standard fib, which right now there is. Could we blue zone that? Without a doubt, we could blue zone. Actually, we will. All right. Because this ABC is going to stay on there, and I will be going through this and um pop when I go and do the next pop. All right. So, there we go. There's my It doesn't matter if it's a little above the line. You could try to make it perfect if you want, but good luck with that. Right. It just It doesn't work that way. All right. Close enough. I don't care. It's just so it jumps out. That's my only reason for putting that in there. Okay. So, we broke through it a little bit. So, what did we do? We chipped away at the ice, man. So, where last week I'd be sitting back here going, "All right, I'm coming up into all this resistance. I'm in position one in the chair. Lean back. Can't reach the keyboard. Just lean back. Right. We get into that blue zone. We break through. We chip away at the ice. And now I'm in position number two. Sitting straight up in the air, focused on my trade. Trade is set up on the system already. All I do is hit enter and we're done. The trade is loaded. It's locked and loaded at this point. Okay. So, what do I want to see? Ideally, we break above the blue zone, whichever one is the highest. In this case, it's the fib line, the 136. Break above, retest, bounce, and there's an entry. Right? There's an entry. Now, this is the S&P we're talking about. So, you could look at it as an entry potentially on the SPY. You could look at it as a signal that said, "Ooh, find bullish positions that are bouncing off key levels and start taking those trades on the Microsofts, the Netflixes, the Home Depots, whomever." Okay? And the likes. So, now we know what that 236 represents. We pull down a little bit and we see there's a 618. That 618 is our first standard deviation in that much bigger picture, folks. Much bigger picture. This is not an overnight trade. We're looking at that. I'm using one standard deviation. Maybe not to the truest of its definition, but I'm using that phraseology to help you understand that this is the first place we're really looking for it to go. Will it blow right through these other fib lines? Probably not. They are hesitation levels no matter what. It's a line. It's a ceiling. If I put a ladder on the floor and the only thing that's up on the ceiling, I draw an X on the ceiling and I and I draw the X and if we if we do it this way, if this is my ceiling, right, and that's a 10t x 10ft ceiling, okay? And I draw an X on the ceiling somewhere off on the side, doesn't matter here, and tell you there are no beams anywhere near this. You go right in the middle of the X. There's no beams anywhere near it. None. Put a ladder on the floor. Put a a a motorcycle helmet on your head. And I want you to run up the ladder straight up. Don't look up. Straight up at the top of your head. And I want you to push into the sheetrock. And you're going to break through it. Okay. Now, it's sheetrock. How much sheetrock is there? Can you look up at the ceiling and tell me that? You can't. You have no idea. Right. I can tell you right here, there's one piece of sheetrock. Right here, there's one piece of sheetrock. right here. There's probably sheetrock and plywood. Why? Because my 618 is there. That level becomes extremely critical. So, the breakthrough, we broke through here. We're going to hesitate there. Does it mean we're going up or down? Yes, we're probably going up or down. Which way? I have no idea. Let's see when it gets there. We analyze one line at a time. We can see if you're a chess player, you're looking, you know, four, three, four, five, six moves ahead. If you're that good. I'm not. I'm like a two move ahead person. Okay. And the first move is let's do this. The second one is can I distract them to my play my compon opponent up. Can I distract them so they make a mistake? That's my second move. Other than that, I'm not that good at chess. I'm okay, but I'm not good. Right. So, we get to the next level. Now, we re assess again. We look for the next level. We look for the next level. This level is going to be harder to get through. run your helmet, that same helmet that you hit this line with where there was just sheetrock and this line where there was just sheetrock and you had great results there. You're not going to have the same results here in many cases. It's going to be a lot harder to get through. You're going to push up and you're going to fail. You're going to come back again. You're going to fail. You're going to break above. You're going to fail. And then you're going to finally bounce right off of there hopefully is what we're looking for. Okay. So that 618 is at 7560. We've got 7563 is our uh fib line, our neg five. So, we now have an extremely strong area to run up into. Extremely strong area to run up into. And when we look at our last line, there we go. We're looking for a one. Now, we don't have any real good confluence there. We've got to look, do we need a Fibbit in here? 7660 to 7980 660 768 69 over 300 points. We've got 150 here. So we definitely need a negative 809 in there. So let's add that in play. So we're a little further away than I'd like it to be. Right. Truthfully, honestly, I can't stand either one of the words truthfully or honestly. What you mean? You weren't truthful and honest before, right? Realistically, we're a little further away than I like it to be, but you could call it a blue zone. I wouldn't. It's a little bit too far away. So, but we are going to expect to hesitate somewhere between the 7819 and 7877. So, 20 and 80, we've got about a 60 point difference in there. You don't need exact. If you want to do math and calculate pennies and all that stuff and get an exact dollar amount, you go for it, baby. You go for it. I'll be on three new trades from from that time as you're trying to do the math. I don't need the math. I can do it in my head close enough rounding. I don't need perfection here. I just need to be able to see it. So, what happens if we make it up to this one? Whatever the distance, whatever the distance from A to B, whatever this was in here, oops, sorry. From A to B, whatever this was, we're looking at the same thing from the lowest low up to the one. So if we do it this way. Okay, we grab the dollar uh difference tool. Come down from where we started our fib. Doesn't matter if you go to that candle or not. Just come down to the blue line and draw it up to the blue line. Right, it's about 820 points. If we duplicate this, double click on it, drag it out. And now we're going to put the top of this at the green line up here. And again, I'm off by a little bit, right? I don't really care. So, you can see we're about that green line there. You can make it perfect. I don't need to. You can click on it and and go in and change that level. No problem. I'm not doing it. All right. It it's too much work for what I'm looking to accomplish. But you can see we're coming from whatever the run was from A to B, which started our fib. We're looking for the move from the pullback, the lowest low up to the extension, a 100% extension or what is known as a stacking method, right? Where we stack our fibs on top of each other, stack our patterns on top of each other. Uh, come on. Two, three, four, five. Okay. Okay. Uh, it's a little bit small. Oh, okay. For some reason, I thought it had gone away. Let's do it again. All right. I just drew the two blue lines. That's it. I drew I don't know which direction I pulled in. From here to here. Okay. Now what happened? It automatically stacked blue to green line and green to green line. It automatically stacked above. And then the same thing from to the downside. Blue to green, green to green, right? The black ones are midpoints. Forget about those for right now. Okay? It's part of a bigger strategy. But I took my standard move from support to resistance and I stacked two 100% extensions on the top, two 100% extensions on the bottom with midpoints in between. Okay, this is the channeling feature that I use inside of watch to market movers that I teach there. Okay, so when we look at where we're going, we're looking at that 78. I would just call it 7880. I don't need to remember the exact number. 7,880. So 7,800 7880. We've got a lot in there, guys. You know, I would not normally put a 7800 level up here because I don't do hundreds. I'm doing thousands on the S&P. But am I okay with a 7,800 in here to remind me, you know, we uh we got another important level in here that could be some slowdown. 7,800. Right. So now we've got a 7,800. We've got an 80 uh an 7819. We've got a 7877. So, there's a lot in there, a lot packed in as a ceiling. Does that mean we're going to hit it anytime soon? Nope. Does it mean we're ever going to hit it? Nope. We may never get there for the rest of my life. We may fall apart off of there and and never ever ever see that level again. And if it does, that's okay. But I need a guide. And right now, my guide tells me this. Uh, let me get rid of this. Let me get rid of this one. Okay. My guide tells me that where we are right now, if we break out, I've got clearance that says yes, we should be considering breakout trades now because we made it past the hesitation point. We're there. So, we break out, retest, and bounce. 7373. That's my next upside target. From there, we're looking at 7464. That's my next upside target. From there, oh, we're looking at the home run, baby. Right? That's the 618. That's 7563 level. 7560 we'll call it. All right, which is close enough right here. 13 cents off. 7560. I'm not even going to try to draw a blue zone in there. It's too small. You won't even see it. There's two lines over each other. It's all I care about. Notice I'm not opening all up at once. I don't need to. My next target is 7661. 7660 from there. Oh, here we go. And there's the home run. 7,800 7819 7877. That conglomerate, that cluster is where I see it going to next. That, ladies and gentlemen, is the way you handle when markets, particularly markets, you can do with stocks, but I like it so much better on markets. When a stock is a market's near its all-time high or its all-time lows, doesn't work as well on lows, but you can do it for that as well. Where does it go to next? Right? If it breaks down, where does it go next? And and I love that we because we got nothing to the left to help us right now. But yet without anything to help us, we have found a way to slap on another indicator, another Fibonacci indicator that projects forward and tells us where it believes human emotion is going to tend to hesitate. Where is it going to slow things down? That and that alone was worth the entire price for admission today. Was this helpful? Give me a one for yes or two for no. Jim typed the question before I asked it. He said, "Was this helpful?" Yes. Thank you. Um, a lot of wants, a lot of yeses. Much appreciated. Love it. Susan said, "So, it's the ABC tool." Somebody asked, "Can you do this on TS?" I'm not sure. Trip Will, um, some others that are using TS. Amelia, can you can you draw an ABC on toss? Do you know? I personally don't know if you could do it or not. Uh Brenda just typed in yes in capital letters, guys. So, uh still, it might have been you that asked before, but I was on a roll and and just kind of blew through the answer the question. Yeah, Jean said, "I need to watch this several times." That's why we put it on YouTube, folks. Here's the thing. I I get in trouble consistently from friends that are traders that own other education companies telling me that I am crazy. Oh, Brener, I don't care about caps. By all means, go for it. Put it in there. That's fine. Um that I am crazy for giving away the stuff that we do. You're nuts. You should not be teaching this, you know, the meat of what you do. That's insane. Blah blah blah. That's fine. Whatever they want to do. They they teach and run their businesses the way I they do. I run it the way that I do. I believe that if I could show you this stuff and get you hooked on it and engaged with it and get you trading and get you to a potential point of being profitable, you're not going to say, "Well, now that I figured out Rob's system, I'm going to leave." You're going to say, "Now that I figured out Rob's system and it's working for me, I'm going to stay for what other stuff I'm going to pick up from it as well." And that's why we do what we do here. Um, Brendan saying stock uh toss has the stock the stacking channel Steel said, "Can I get the snap to wick to work?" I'm not sure on that, Steel. Uh, teach a manif. You got it, Tom. That's it. Yeah, Jean. Amen. Yep. Absolutely. Yeah, good point, Diane. Good point. They don't have the same values that I do. And that listen, many of you here have invested a lot of money with Wealthbuilders. You put your trust in us. you you're involved in many of our programs that we have right now and that's wonderful and I love it and I appreciate it very much. Thank you. Um so to say, hey, this is a bonus and a give back. It's not like we go out there and advertise this to the world to bring new customers in. We don't we don't use power hour for that. If you're in our ecosystem, you're getting an email. If you're not, you may find us on social media, but we're not running an ad for it on social media, right? We run ads for other stuff, okay? But not to come into power. So, um, Sus Susan said you had you had you and Dale Zamo over 20 years ago. Uh, loved you then. Love you now. I appreciate it. Well, Dale's got a class coming up uh this next week. I think this week I think this week. Uh, grateful for the free lesson that you put out. You're welcome. Steel Jim said in and toss to do an ABC right click, select drawing in the drop down, select Fibonacci price extension lines. There you go. Fibonacci price extension lines are what you're looking for on to guys. Jim, I appreciate the the detail and the step by step, right? I think we're going to pass up today on the the the candidates here, guys. So, with that, make it a profitable day. Stay focused on the quest to becoming a great trader. Keep crushing it. And remember, you're just one trade away. Don't give up. Don't quit, folks. Fight through it. That quitting is not an option. Not an option. All right. I will see all of you at our next update, everyone. Take care. Uh we'll leave the room open for a couple minutes. Uh Andrew dropped in a link earlier. Maybe you can drop again, Andrew, in to the next upcoming trainings that you can go ahead and get registered for that. It is free. So, uh I'll leave my screen up as well. So, you'll see that on there, right? Wall Street is lying to you and they are. Wait till you see this training. But, uh everybody have a great day. God bless. See you at our next one. Bye for now.