Good morning to all of my fellow internet stock trading, friends before we get started, i would like for us for a moment to do a little pass key and let's circle back circle back in time to when the fed had a target inflation rate of two percent And then screwed that up and then our oh, so ever helping government told us that it was going to be transitory and then it wasn't, and now instead of 2 inflation, it's 8, which means you're riding a bicycle to work every morning, yeah so much for the Lambo lifestyle can't even afford the gas kit so with that being said, there's no fear no fear, because without a doubt, joe biden he's got a plan, so all we got to do is just stick to business and what is that? It's looking at the charts? Meanwhile, all those other people they're gon na fix things for us. So in the meantime, hunker down load up your robin hood account and use zero dte yolos until things subside. So, let's get started yesterday afternoon, you can see the markets kind of had a rally. Well, yesterday afternoon, before the rally you can see in this tweet over the negative two smd can cause the markets to push, might see the prices of 396.56 tomorrow.

Okay, so we were trading down about 391, the idea, the theory the play the concept was. This was the resistance okay, that was the initial breakdown for the day right when we gapped down yesterday, then the market opened and then we sold off for the morning. The breakdown happened at the negative 2 smd and the 50 sma, which we'll talk about in a bit you can see. We sold down the first big squeeze.

Bounce play on the day was from here back up just above the negative 2 smd, actually to the nasdaq negative 2 s b, either way concept here is this: was the intraday resistance in order for the markets to go higher? Yesterday, whether it was in the afternoon doesn't matter, they couldn't do that until they cleared this. So this here is the recommendation that, once you cleared this level, you could look up to that level. This level here is priced at 396.49, as the market goes up. This level will recalibrate and move a little higher okay.

So that's why i said 396.56 instead of 396.49, with the expectation that as this market moved up, this would move up a little bit, so i figured we would be higher than 396.49 closer, some around 396.56 396.60. Okay, so now let's go back and look at the charts. So when we go back and look at the charts you will see this is that negative, two smd line that i was just showing you in that twitter post negative, two smd, okay - and this would be the next one up. Okay, so you will actually see the market ran after the breakout here to the price after hours to here, and if we zoom in that price is 396 actually the last tick, there was 396 54..

So not a bad call all right now. You can actually see that i'm actually wrong in the sense, because this ended up moving up to about 397.. Remember, i said that line should move up a bit so as the markets are running up, this actually increased to about there. So an accurate call on the pricing, but slightly wrong in terms of how far that deviation would move up as the trend moved up a bit okay, you will see this morning.

We have sold off that high, but where did we sell off to well, we sold right back down to the six month trend. Okay. So let's take a look from yesterday's action again we're on the spy. So here is the the six month trend breakdown to start the morning.

Everyone gets bearish shorts, get squeezed right back to the breakdown level and slightly above, and that's because the market went to the the nasdaq sponsor we're just not gon na we're, not gon na get into that right now, all right and then we pull back and then We create a bigger ww pattern right and then we roll up and then eventually we get control over the six month. Once that happens, the market does what we'd like to call a little ripper magoo 396.54 sells all the way off to where the previous breakout, which is the six month trend okay, this here this is a price action pattern breakout. This is a six month trend. Breakout market moves up.

We sell off back to the six month trend, okay, so this is your current, immediate, short-term support that the market needs to stay above or else. Obviously you could go lower, but as a whole, if you're not staying above this, then you're not going to be going back up right. Okay, now, let's look at the moving average system. Yesterday i made some twitter posts about this that were arguably right but wrong.

So not a very great analysis, but there's always something to learn from it. So yesterday, if you go through my twitter page, i'm not going to pull it up, but if you take the time to do so, i'm not saying you have to. If you choose it's all you know, just you don't have to go there, but for those of you who watch the youtube channel, you know keep up with my twitter page you're, probably aware of this uh. This is an open high, low closed chart, no pre-market.

No after hours and it's set on a 10-day 30 minute interval - and that is a 10 simple moving average and that's a 50 simple moving average. It is not a system or a moving average strategy to make you the world's best trader. It is a system and a strategy to help you not be an idiot and help you understand when you can be on the right side or the wrong side of the trend by simply looking at two moving averages, as opposed to trying to trying to draw 36 000 trend lines, 39, 000 different support levels and then squinting in a chart all right. So the concept here is really quick when the blue crosses down below the red you're bearish and when it crosses above you're bullish yesterday, it was interesting because yesterday was a pullback day all right, yet the moving averages were still crossed over okay.

So you can see we crossed here and we actually crossed back down below here, which theoretically would be bearish, okay, which theoretically would be bearish all right, so you can see we crossed down below, and so i'm like. Ah okay, we just got a bearish cross. You know i will pull it up. It doesn't matter if you guys are enjoying this, i'm enjoying it too all right.

So, let's just go through this really quickly. Oh, i got ta close that and then we'll go here all right, perfect, all right. So you can see this is 19 hours ago i took a screenshot of it. We just got a bearish cross.

Now you see how little that crossed right. So this is when i'm posting on twitter right. It's another thing for you guys to to maybe make a note of is when i'm posting something to twitter, for you guys to kind of look at um, it may or may not be a trade recommendation or an idea, but a lot of the times. My twitter page is supposed to - or at least i like to think or try my best to make it a four site analysis for you, nothing, 2020.

Only foresight. I don't want to give you hindsight, 2020 analysis. I want to give you foresight analysis knowing before something's going to happen. So the only way i can do that at least on twitter is to post something as soon as it's happening, so that that way you either have time to see it time to participate on it, or my twitter page will be archived with the before in the After as evidence of the foresight analysis, that is why, when you go through my twitter page, you will always see these where i have a snippet uh i'll find one, maybe one of these right there, okay.

That is why you always find my twitter page with a screenshot of a previous tweet and a picture and then screenshots of what the market is currently doing, to show you that 22 minutes ago i told you this was going to happen, and here we are 22 Minutes into the future or the present i don't know i'm saying, and it happened so there you there, you have it for my twitter page everything on my twitter page. I generally am trying to give you foresight. Analysis make quick posts in the immediate, so you can see what's happening before it happens and then have it come to fruition, and so that's the objective of my twitter page. Okay.

So when we go back up to this post here, which was the the moving average cross right, that is barely crossing just barely okay. So when i post that and it's just barely crossing right, we haven't truly gotten like a like a true cross cross right, um. But we're like testing it. So this is what we would call a false cross.

Okay and i'm gon na help you to identify when you probably know it's a false cross and that you wouldn't be bearish right, and you will see that if you just go up and follow the twitter post ready all right so far, false cross right. So why was it a false cross? Okay, so we crossed here, the candle was bearish. It's a 30 minute chart before this red candle could close. It turned bullish, which then prevented that cross from happening so within a 30 minute time frame.

Arguably, maybe five minutes from that candle flipping from red to green. You have uh reverse that bearish signal cross. Okay, now um wait. There should be another okay here it is all right.

So you can see the candle goes up green and, as the next 30 minute candle comes into play, we end up getting the cross okay, so the previous candle flipped green prevented the cross on this 30 minute candle next candle's red either way we get the cross. Okay, so this is where this is very important. Okay, now we have the bearish cross unless the market holds over these smas we get spanked. So at this point we can safely say.

Yes, we have a cross because we have a candle closing a new candle opening and this moving average is below the red okay. So we do in fact have a bearish cross. Okay, you can get false signals, so if it's a false signal markets would have to hold over the sma. So we will.

We have a bearish cross there unless the market holds over the smas, which is this and this we get spent okay. So what would holding over the smas be, that would mean pull backs and the market supports right, because if this is bearish, then the assumption would be the market would go this way. Okay, so if that is the case, then the market should go this way and if it holds the smas, then we probably get a false signal. All right go up to the next picture.

I think i put it on here. Maybe i didn't it might just be on my computer, okay. So now, let's look at what happened? Okay, so we have the bearish cross unless the market holds these smas, we get spanked next 30 minute candle holds just above next. Red candle holds the blue.

Then next green candle holds the red and we even cross back over there. So you can see once we got the cross. We still had one two three candles holding just over the moving averages, creating that as support okay, then you will see the market moves upwards. All right, so the reason i went into so much detail.

There is because the system goes both ways right. You can have a bullish cross and be on an upwards move for a couple days. So when we look at the way these cross, we just got a bullish cross here all right. We got a bullish cross here, so until this blue crosses back below the red, arguably you're not going to be seeing big, immediate selling off.

Okay and everything that sells down you should expect, is just a pullback to this level, okay or to this level, and until we break back below those, you don't get like dramatic selling pressure, all right, so watch what happens when we do this? We're going to add a level here just on that line and we're going to add a level there right on that moving average. Okay, disregarding the standard deviation for a second all right. Oh, that was the yeah. That's weird! Why isn't it populating on my chart? Oh cause: that's um, i'm looking at the nasdaq chart, i'm over here all right so ready, let's, let's just make sure this is accurate.

So let's zoom in a bit yeah. It looks pretty good to me we're just over top of those lines so look at where they appear on the next chart. When i move this one out, so we're gon na put it right on top and right on top there, okay and then, when we go into the pre-market action today, you will see the market did what sold down directly almost to that sma, and then we bounced Also, we have the statistical probability there, so, even if we weren't looking at this moving average cross system idea, we would still know that support is right there or good chance, because we have the statistical probabilities there. Okay, so let's take a step back, let's think about what we're talking about.

What's been said, what's going on, there's been a lot thrown at you, okay, courtesy of my knowledge from uh ricky g. I'm just kidding all right. So with that being said, what do we really have? We have a bullish cross that happened yesterday afternoon. The market rips after hours then sells off in the pre-market session.

Today we have pulled back, we've effectively pulled back to the location of the smas, which created the short-term uptrend and after uh the afternoon session yesterday and we're located on uh the uh the six month, breakout trend from yesterday. So right now you shouldn't be bearish going into this open. It's just a little too that you just shouldn't be bearish. Okay, we have the bullish cross.

Okay, that's one we're on six month support! That's two! We're on the sma support. That's three! Okay! I have the utmost competence in joe biden to fix the entire world, so that's number four that should be just. I mean that should just be a no-brainer um. So with that being said, i think we have to be somewhat optimistic on a long day or attempts of being long biased.

Now the lawn could fail um, but i think it doesn't make sense to be bearish in the immediate right. This second uh, given all these things that are lining up, okay, so markets go bullish. Your first target would be this ghost wick and then arguably up to 288 30 on the nasdaq and then arguably up to 397.06 on the spy. Okay.

Now, let's say i'm just an absolute jackass and everything, i said, doesn't happen if we actually go down now. If we go down, your first target down would be the price of 283.23 to 284 on the nasdaq, because that's where the next closest statistical probabilities are which those are going to update at the open - and i don't know the exact pricing they're - going to update into The open, that's why i always post up on twitter um. So that's that's kind of like number. Five after biden saves the world, so we have a move down potentially into your 283 90s.

282. 23S um. The one thing that would probably convince me to be a little more bearish is if we break back down this sma location, okay, so this is important to pay attention to. Is this 50 sma when this 50 sma gets taken out a lot of times you go into a sell-off or when it gets taken up, you go into a little bit of a buy um.

So again it's just it's a simple way to kind of go: hey! We're over this we're not going to be bearish until we're under this. So we know the location of that 50. Sma is about 390 70.. So, in the event, the market just kind of flops and we kind of start rolling back down and start to go below that yeah.

That's where i could see us getting bearish. So for the time being, the analysis will be. We have a bullish cross, we're holding a bounce right now, don't see a point in being bearish uh, yet until we probably break the 50 sma location or start closing below the 391 65 six-month trend. Okay, so the objective on a bear move would be pretty much breaking six-month trend targeting down to the nasdaq 282-23 and until we're below that, we can't go lower, and that is today's analysis.

I hope you guys, like it a little long, a little juicy a little bit of comedy in there hope you guys enjoyed and i'll catch you guys in the next one. Everybody take care.