Welcome to small cap recap: everybody. I've got a fun guest here on with me today, connor callaway, hey guys. How are you this is uh? We actually just got. We just got done filming uh tui talk show uh.

He is one of my good trading. Friends. Uh met up for like for the first time with him, like i don't know back in august and been close ever since uh connor, crushed 2020 2021 markets markets, you'll get more of a talk on that uh on friday, when the tui talk show comes out um Today, he's just joining me right now for small cap recap he's in town, so i figured why not have him as a guest um. So, basically guys, i i haven't taken a trade this morning, nothing, nothing really! That uh was ultra appealing to me again, like i told you guys, i'm mainly focusing on the afternoons.

There are a couple i'm watching and i'm going to go over a chart too, that just kind of gave me some massive fomo um. Just because i was in it yesterday and timing was off cut it for basically break even and then today it worked picture perfect according to plan, but i'll kind of go over that that pattern here and yeah right now, there's really just not like a whole lot. A whole lot happening in the small cap world i mean most, everything that ran today was like up until midday and then just dumped just died. Actually we'll go over a couple couple charts here, so this one was alvr.

We actually called this one out alerted in small cap right for that 720 break. I know a lot of people a lot of you guys in small cap hit this one uh like seven low, seven dollar average and we're selling up into this halt um and got out in here beautiful spot. We had that really just nice, fake breakdown talked about that kind of similar intraday setup um, where we're getting like these, not not quite like the veru style, where it was just every time, breaking fake, breaking out of highs. But this was a really really nice area where you just had the opposite happen.

Um, you had a big support, break which again is going to lead to a lot of panic, selling or short slamming lows. Then instant recovery through that high day break, and it has inevitably led to a halt up, but again like that we're just like i was just mentioning like there's just not a lot of follow through in the small cap world right now we're going to go over To crxt same thing, big run up until midday and just complete failure, uh afterwards uh. Now there is one small cap, though i'm watching for the afternoon here, and that is io just kind of setting up like this like. Essentially, if we, even if you don't really include pre-market like this abcd, we had the big spike here, a little spike out of the open dipped down now recovering not as clean as i'd like for it to be.

It did dip really hard into the afternoon, but i like, where it's holding if we can get back over this 70 cent level, uh, obviously we're recording this. You know before market close. I do have a webinar to give today, but uh it if we can get back over this view, op area into the 70s push i wouldn't mind, trying it for an afternoon push into like high a day or maybe even pre-market high uh we'll go over the Daily there real quick yeah, i mean that's just the problem like and connor i'll, probably let you get to this in a minute but like everything, is so backside on the daily right now like there's just not a lot of fresh breakout, charts anymore yeah, nothing really! Um, it even sells like i now not a lot of volume, of course, but the daily setup same thing right, like it's kind of like a first green day bounce. But again, it's just so hard you're gon na be running up into so much resistance that it makes it pretty tough for these to move connor, you haven't been trading a lot of small caps lately now, no mostly large, cops and such which uh today's pretty similar Market to uh small cops, not too much setting up here, we'll go over netflix quick.

So this is the daily chart on netflix everybody from a high of 700 in november, now down to almost 200 uh as of april 21st. So, like four four months, it's down well like 60, something percent from highs absolutely crazy, but i wanted to bring this up up here again. Connor's been mainly trading large cap so like this is almost i'm not going to call it moving like a small cat, but i mean this chart literally almost looks like a small cat pump and dump on the daily um connor. I know you were watching this this morning, just as a trade and like kind of expecting this, let me get back on the daily there that that bounce off supporting like the 230s, did it like.

How surprising was it that it didn't even try to act as support yeah, so that would have been my hope there, the 232 area. So when that came a little under 232, it took a starter: how to cut it for a loss. Obviously, there was uh. Absolutely no bounce in that range which uh surprised me, but i think with a lot of these large cap names like it's not the same when you have these large caps that are actually dying on earnings - and you know the company kind of uh dying out a Little versus like a small cap where support and resistance is like you know - maybe it works surprisingly a little better on these.

You know negative 60 moves, so it was pretty surprising to not see it hold that level and really that was the level to to look for so i mean on netflix. I guess you could see going forward. Uh that range breakout uh could be the only trade that i really see uh coming for netflix and that's definitely not going to come today. So i'm curious your thoughts again as more of a large cap trader, but, like we've, had a lot of these charts like complete destruction, i think in fact, maybe like the daily and then type in.

I know for a fact. You know facebook has gotten crushed right. Just to show you guys that um that's actually looks a little bit better than netflix. I think shopify did as well.

Oh my god, that's bad! I mean what's like what's changed? Is this air coming out of the like coming out of the box? I think that's. What it is, i think it's just deflating at this point. I think a lot of the you know what these companies started to get value at is just not possible and then with everything else going on in the actual world. You know supply chain issues this and that they're not able to deliver um what you know what they're being expected to deliver because of these ridiculous valuations.

So because of that, a lot of these earning reports, uh they're they're kind of bound to fail, i mean 2021 a lot of the times. We're seeing big runs before earnings, because everyone was crushing him right right now. It feels like you know: people couldn't care less to be in the ticker uh. I haven't looked at tesla in a little bit, but let's check that daily yeah.

That's actually, i mean, relatively speaking, that's one of the best dailies out there in large caps, yeah and uh today. What's it trading at right, now, nine eighties, nine! So it's at nine eighties right! It's been literally straight down the full day and uh it's it's kind of interesting to just uh put out there that it has earnings tonight right before tesla before earnings. Back in 2021, i mean there's no way that was selling off all day right before turning's report. Right so things have definitely changed a lot in all markets, but especially uh.

You know large cap world as well yeah i mean we used to kind of have that like buy the rumor, sell the news things with earnings right because again most companies were beating earnings because especially these tech companies that are mainly not not saying tesla, but you Know these facebooks these netflixs shop, like service-based businesses, were just huge during the pandemic. That's all you could do right, yeah yeah! I know for sure, and i mean a crazy thing right now too, is uh. Imagine you had netflix. You know commons right commons say the safe bet in earnings and you're down 37 the next day uh.

Does that make it very attractive? You know to go and tesla for earnings even commons right, the safer bet and tesla's more volatile, technically speaking, uh than netflix generally is so i'm not saying tesla's going to fail earnings or anything. But you know people are definitely scared before earnings reports which wasn't like that's uh, that before it was more like before 2020 and 2021, it was more of a depending on the company right right now like pretty much every single market. Exactly this, the sentiment is not there for earning reports. Now, i'm curious again your take on this right.

Like do you have all of these large cap companies getting crushed and, relatively speaking, the spy is still holding up like what mentality-wise like what does that mean to you like? Why is this holding up so well when most of these, just in general, for spy personally like, i think i think it was very telling, when we bounced off that, i think 409 right yeah when we bounced off that 409 low and right back to 465? I think that was pretty telling, and i think i think that personally was more than a bear market rally. Um and now you know we're holding a higher low uh than both previous lows right and for me personally, that's the level um. If we lose that low, then my sentiment changes big time, but for now it's uh. I am relatively bullish on spy.

I think we can get through that 465 area and i think we are ultimately setting up for a bigger move in uh spy going forward. But again that that low is uh the level to uh take note of and one other thing i'll bring up. Then um is you know generally when the spy is going up like this. You have all these large caps following along and to be fair.

You know tesla is i'm sure apple is doing all right yeah, but i mean what does that mean if you're bullish on spot? Oh yeah apple, actually looks great, that's solid um, so you do have a lot of these like real staple. True blue chip companies, like google, doesn't look fantastic, but you have the spy moving up bullish on that, but all these other actual large caps are bearish on. How do you even trade, that type of action that that's why this market uh is pretty difficult right now, and a big thing too, especially with large caps, is a lot of these charts like you just brought up kind of like unsavable. If you look at uh, you know netflix, you don't really see how that can turn into any sort of bullish, sentiment anytime, soon, um, and that is the same with a lot of tickers right, so especially tech companies right now, qqq's weaker than spy.

In the last little bit, not in the push-up, but the last like couple days last week or uh whatever so one thing that is definitely definitely notable is just basically how you know a lot of these single names. Look unsavable, but spy is still pretty uh. The chart looks pretty decent, so i think what will happen is we're gon na have you know, based on both of those it's hard to be super bullish and it's hard to be super bearish um and i think one. You know we're going to give one way and either the charts can't be saved or they're going to figure out a way to save them a little bit and uh spy is going to carry it forward right and that's that's the thing to remember too, is that You know we do have apple tesla.

Google amazon, like the big big staples still at all-time, highs right um, and you know that the problem is just because spy breaks out doesn't mean every large cap is gon na, be breaking out. Yeah, it's gon na be a little bullish, but, like you brought up with netflix man like that is i haven't seen a chart like that large cap. In a long nah i mean it's notable too. I'm i'm pretty sure netflix is one percent of qqq yeah.

So if netflix is one percent of qq like it doesn't have to be safe for qqq to go up obviously, but when you have charts like that, that are a percentage like it's coming down to netflix like in netflix, i'm assuming is going to be taking out Of the qqq um relatively soon, and that would just plummet netflix more um, so i really couldn't see uh how this chart gets saved or how you could uh really want to be in this overnight anytime soon, um netflix, particularly uh for those of you not. You know that didn't read earnings or anything: do you want to explain real, quick kind of what that? What led to a negative, probably one point close to negative 40 percent down on the day yeah. So i i i'm not too great with uh the exact terms and reading earnings and this and that, but from what i've taken from it uh, they were expecting 2.5 million users added in the quarter, one of uh 2022 and they actually lost 200 000. So they didn't like they were technically.

I guess you could say 2.7 million off what they thought. They were going to add right, so not even just earning base, but just strictly on adding users. The company is losing users for the first quarter in a while. So, based on that it doesn't, you know, give a good sentiment for the business right right and i mean now they have competitors like a lot of competitors, tons of competitors more than ever and there's that rumor too right like netflix, is going to.

You can't share an account anymore, yeah they've already made it harder to do exactly, and i think that's one way just as a company that they could bring back some earnings even with losing uh losing i'm losing people joining, because people are going to have to get You know on new accounts to stop splitting with people, so that's the only thing i could see them uh doing, but even then, with a chart like that, i don't know, i don't really see much relief yeah. I mean that that might be literally an all-time high forever for a company like netflix right but uh. No, that's that's about it and then the only other thing i wanted to bring up in the recap today was i'm a little a little mad. I missed this one.

I was loaded yesterday and quick little lesson on fomo. I didn't i just didn't chase, but i had a lot here from the low tens kind of hoping for that afternoon position, in which case i might have swung, but then today i wasn't again: i don't trade, the mornings and um. It happened to work really well, and this was still a bit early. I mean when was that 1 30 yeah still a little bit early for it.

I wanted, and i don't know if i would have liked that fake high day break and then continuation, but you know i got a little bit. I just have fomo looking at it, but that doesn't mean that's one thing i'm trying to work on and you guys at home should work on two. If you have fomo like don't let it carry into the next trade, it's a lot easier said than done um, but it just like learn to be comfortable, not trading when's, like the last time you've like taken a lot of trades throughout the day i mean i, I really can't remember these days it's a few names and move on, and it's not a not a, not a lot of trades, not a lot of trades at all. A hundred percent um all right guys.

Well before we go the one thing i do want to make sure that you guys know is tomorrow: tim bowen is doing a free, live webinar, 8 p.m. Eastern basically talking about this exact afternoon trading strategy that i use almost every day when i do take a trade i mean it's and if you're listening to this right now on uh friday, the talk show will come out that we just recorded. We probably talked about this like 10 or 15 minutes about just really why afternoon trading and my opinion, your opinion kind of superior. So if you guys kind of want to learn more about this really great afternoon pattern, make sure you hit the link down in the bio again.

That event is live tomorrow: 8 p.m, eastern thursday, uh connor. You got anything else to add about your kind of large cap views here: no, not really yeah, it's hard to be uh fully. Uh have strong conviction on either side right now, no and that's be okay with waiting right. It kind of almost goes back to the fomo thing you don't have to be in a trade, exactly um all right guys if you like this episode.

Let me know down in the comments below and you can also let me know by hitting the like button um. Thank you guys for tuning in i'll, see you guys back here. What's today, wednesday should be here friday, um i'll, try my best but yeah. Thank you guys for watching bryce, toohey and connor callaway are out no dancing from connor, though we hope you guys enjoyed that.

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