Good morning guys! Welcome back to the channel! Appreciate you guys tuning in. Uh, today's first video because I plan on doing more than one is going to be short. It's really going to cover. Uh, just a few things that are taking place outside of the S P 500 which we normally talk about.

Uh, that's going to be the stock AI Okay, so over the past, call it months specifically. like the past week or so, uh, there's been a lot of hype around this AI stock Now I'm not saying that it's not for good reason, um, that it can't become something even better. but ultimately, the stock AI that everyone has been following this past week for the most part in past couple months is in the plus three plus four standard deviation standard error location. So what we're going to do is we're going to look at a daily chart and then we'll come back to the shorter time frame chart.

So we're going to do a daily chart here. Actually, no, we're going to do a four hour excuse me? Um, so delete this guy here. So looking at this four hour chart, All right. I Know there's a lot of lines there, but really, all you have to know is that once a stock gets into the blue upper blue in purple, that is generally where the market has reached a statistical overbought location.

Not an RSI overbought, but a statistical overbought location. Okay, so you can see back in um: January going into arguably February The market on AI ran up to about 30 bucks, which is pretty much where it's at now a little more and then what did it do? Basically rolled over all right, dropped from 31 down to 20.. So a 10 point drop and then go across what's it? do It spikes back up into the blue close to the purple, sells off another 10 points and then we grind up and we short squeeze out. Typically I would already assume we should be bearish here, but this is slightly different than the previous two tests of the statistical overbought location.

see. before this, we were running up into the statistical overbought location for the first time. Then we pull back and then we push back up into statistical overbought locations for a second time. Then we pull back and then the third time we are theoretically breaking out in squeezing and stopping out any of the volume that was bearish before where many would call this a bull flag or a pennant and a breakout.

right? You can see that, all right. So most would look at this as a bull flag and it's breaking out. and this is entirely true. So the bull flag has essentially broke out, squeezed or starting to squeeze out any of the bearish volume that had been trading short because of statistical overbought reasons.

So with that being said, I'm not surprised if the move goes up a little more. But Ultimately, we have entered back into the statistical overbought locations. so as this Market keeps going up here maybe even towards 37.90 you should already assume this is an extremely high risk buying location and then anything into here and over here has a high probability chance of selling off, pulling back, or getting stuffed just like you saw here now. I Would say this if in this current moment in time, the chart looked like this right here.

If it looked like this, I would already just tell you to short it because I already knew that we were in statistical overbought locations. but since we have done a flag and broken up, I'm being more cautious on alerting you to short this because all of the volume that was bearish, all of the volume that was bearish is getting pushed out. so it's a matter of how much of that volume still needs to be pushed out before this kind of gets slightly exhausted. Okay, now I'm going to go to a daily chart real quick.

Okay, so when you go to the daily chart, you can pretty much see that we do have decreasing volume. In the up move, you can see volume is slowly, well, almost slowly decreasing in the up move. Generally speaking, you want to see increasing volume as the move goes up for continued follow-through And of course that's not necessarily a guarantee, but it's one of those additional pieces to the puzzle that you would like to generally see as a move progresses. So for those of you that have been watching the stock or hearing about the stock, whether it's CNBC, whether it's Twitter or whether it's some Trader just know you've now entered into a statistically high risk environment for the stock.

If you could not already tell, so I would I would suggest to be very mindful of that and very careful. Okay, number two: OPEC has cut oil production. So this morning, if you look at um, the Futures Market on oil, my chart overloads. thank you.

So if you look at the Futures Market on oil when this data loads, which you can't really tell from the chart because it's an overlapping volume, but we'll just put it on a short term chart here. Oil Futures have gapped up six and a half percent Five Points Okay again, oil prices or sorry. oil production getting cut Increasing price Okay, if you look at WTI WTI is going to be up this morning with a gap up. If you look at XOM If you look at Oxy, they're all going to be up with Gap UPS because the concept of the oil production Cuts If there is less Supply than what is currently on hand is more valuable.

If supply has been cut, there will be less to go around in the short term future. Therefore, prices go up. so let's go over to Oxy really quickly. If you look at Oxy, there is a gap up because if there is less women to have sex with, than the women to have sex with currently are more valuable and vice versa.

If there's less men in the world to have sex with, then they're uh, more valuable. Okay, you get the concept low Supply again I Demand Okay, becomes more valuable. sorry that I used a weird one there. but I had to make sure that you guys were still paying attention if you know what I mean jelly beans.

So with that being said, a couple things to pay attention to are probably oil over like the next couple weeks as OPEC Cuts production and things get a little funky there. Also that AI stock only because it's it's in a very extremely high statistical area where with the right circumstances, it can have a continued blow off top and it can also result in an extremely good pullback. Okay, so those are the couple things I would uh suggest you kind of keep tabs on going into uh this week and then after this video is posted uh, we'll be uploading our morning market analysis so everybody take care, have a great day and sorry if I offended anyone. but not really about the old sex thing, but uh, hopefully you guys are all adults and you find it somewhat comical and some humor in it.

But again, uh, with that being said, we'll catch you on the next one. Jelly Beans.