The following is a presentation of TFNN. The Trader's Edge with Steve Rhodes. Toll free at 1-877-927-6648 or internationally at<PHONE_NUMBER>. The Trader's Edge. Now, Steve Rhodes. Good morning, folks. Welcome to the August 14th. The marvelous Monday edition of today's Trader's Edge show. I'm your host, Steve E. Perseverance Rhodes, who absolutely knows that each of us should always be pioneers of our future versus prisoners of our past. Hope everyone out there is having a great day. Let's make sure we have an extraordinary one. And the reason we want to do that, folks, the easiest way to do that is to always remember that life is happening for us, not to us. That's right. When you and I make that one little two-by-four shift, it means we can find the gift. In every set of circumstance, that life is going to toss at us. Now, today, you and I, we're going to go check on the circumstance of these markets. We'll go figure out what those bulls and bears, what those buyers and sellers are communicating to you and I at just past 11 o'clock in the morning. I do want you to know I'm absolutely grateful for your presence here, but even more important than that, and that's this. During this next 53 minutes, I am here to serve you. So feel free to pick up that phone, dial on in at<PHONE_NUMBER>. Now, if you've got a question but you can't call in, you can always send me an email. Send that off to Steve at TFNN.com. Please send it early. And in that subject heading, if you'd be kind enough to put radio show question. Now, if you're inside, our Tigers did, well, then any in every ping will do. So let's go ahead and get this show started on a marvelous, magnificent Monday. Of course, this is Tiger Financial News Network. I'm Steve Rhodes. Welcome to the show. We've got a mixed bag out there. The mix goes like this. And now it's trading out 13, 19 points. That's basically flat. The S&P's up three tenths or 14 points. The Nasdaq 108 tenths, 118 points. Russell's down three quarters percent. That would be a 14 point move. The Summizer up one and seven tenths percent. That's a 60 point move. Trend is up 35 points, two tenths of a percent to the downside. Gold's down about six bucks right now. Silver's off 12 cents. Lights recruit off 62 pennies. Natural gas is off 1 cent. And the 30-year treasure right now is flat. Trading out at 1, 20, 24. Leading to charge dollar-wise the upside. We've got Monday.com. It's up about $19. That's a 12% move. 4% for NVIDIA at 17 bucks. Teladine's up 17. That's a 4% move there as well. 2% for Broadcom. And Eli Lilly is up 15 bucks, nearly 3%. To the downside, it is Mercado Libre. Up 30 bucks, a little over 2%. Hawaiian Electric Industries down about 13 bucks. That's a 40% move. Don't blame it on them. They ran out of water. There's some corruption going on over there. If we take a look at the McKesson Corporation, down about five bucks, 1%. So that's what's going on inside the markets. Of course, I want to look at what you want to look at. I believe where we need to start, where we are going to start, and actually kind of coincides with the workshop that's going on tonight by Teddy Kekstak. You know that I use Japanese candlesticks, and so you want to learn that, folks. So it's a workshop that is absolutely worthwhile. But if we take a look at the Euro right here, we're going to go take a look at the US Dollar Index. You'll see an A to B equal CD pattern. I had given the Euro. I really had said to subscribers. And this was a close call because on this trading session, really three trading sessions, the second, the third, and the fourth out here, we had a three River Morning Star pattern. So that should have confirmed that buy the D point pattern. But price never made it to the one to one price extension. Well, it has this morning. So it's down at 109. We've got the A to B equal CD to the downside. What needs, in order for this to generate a buy the D point, a Gartley buy pattern, you need some type of bullish reversal candle. Short of that, price should go target its next price projection level in the 108 level. Now we don't want to stop there. We're going to go ahead and switch screens out here. We're going to switch over to the white background screens because we take a US dollar index. If you caught the, if you caught the market update at 11 o'clock last week, the US dollar, and you'll see it right here last week, the US dollar index did generate a three River Evening Star and price negated that on Friday. So where's price likely going to head to? Well, it should head up to the 103.62 level. That is its TD nine count breakdown area. But if it's going to do that, if it's going to, well, if it's going to continue to move higher, the euro should continue to move lower. The yen or some combination of these are perhaps all three. The euro should continue to head lower. The engine continued to head higher. The yen has an A to B equal CD pattern to the upside. It negated it at first. It did generate a sell the D point pattern back here. Let me get my cursor out and give you that date. That was when it formed that bear sash candle on August 3rd. That was negated last week on Thursday. Price is above its TD nine count breakdown level. The Japanese gen wants to continue to move higher out there. But a bearish reversal candle would generate a sell the D point. But as this chart here, as the euro, as the yen, I should say is moving higher, it's weakening and putting strength inside the US dollar index. If the euro continues to move lower, which it likely will, that's going to put strength in the US dollar index. And right now, if the Great British Pound, it's really these three currencies that we'll focus on. If the Great British Pound closed below 1.2621, it'll negate its buy the D point pattern. And that'll suggest to move all the way back to its breakout level. And that's at the 1.2437 area out there. So that's what's going on. What we can also do here is I'm going to close this out. I can't just say, I can't just sit here and tell you or suggest or say to you that, hey, the US dollar index negated its sell the D point pattern. And therefore it's absolutely going higher. We can't do that. Why? Because of the underlying instruments and the weightings inside of those. So we really do have to pay attention to what's going on with these currency pairs. Let's close this chart out. However, if we want to go just dive down a little bit into the Euro, let me see, I think I've got those charts here. So we've got those charts here that are populating. And as we dive down into the Euro, what do we see? Well, on a 30 minute basis, we see a TD9 count bottom of this form. And that ran price right up to the oscillator and change line. That's at red line 1.09 right now as a print. Price needs to close above that to then say, I'm going to target my next resistance level, which 1.092 and above that would be the TD9 count breakdown level 1.0953. The 30 minute chart has a bottom. That's it. Just looking around. No, you've got a five hour timeframe chart. No, this bar here, I'm going to open up the five hour chart. So the five hour chart is in a TD9 count bottom with this bar closing at 1pm. And then you've got another five hours. So this evening at about 6, you should see a five hour TD9 count bottom pattern complete. And so you'll want to watch that because if that low gets taken out, that's going to then suggest that in fact, on the daily basis, say to be equal CD to the downside out, you can't see it on this chart here, but it would really suggest that price is going to go target that level of 1.0696. And that's going to be important when you and I take a look at the markets day, we take a look at gold. So really just setting up why we're spending time here. Well, what I wanted to certainly be able to pass on to the importance of those bullish and bearish reversal candles. So certainly attend. If you don't know those, you certainly have got an opportunity to go get your knowledge about that this evening. So let's get away for now. In order for me to move away from, well, let's see here. Nah, that's what we're going to do. I'm going to move away from these charts, but before I completely do that, what I have to do is I need to close this chart out here and then switch to some different data feeds. Otherwise, I'm going to give you bad information and Stevie is not going to do that. Most certainly not intentionally out there. So I'm doing that right now as we speak. My apology. Oh, shoot. I didn't do it the way I need to. All right. It's going to tell you, well, we're going to be going into break. So they had a great weekend in Atlanta with my 10 month old grandson. He was a great kid. This child is going to automatically go to walking. He does not want to crawl. Period. Steve Rhodes with TFNN. Hey, who doesn't wants to crawl? We all want to walk. Steve Rhodes with TFNN. We'll be right back. This is a primary tool among successful traders and you should be no different. Candlestick patterns can demystify buy points, sell points, general price movement, and so much more. At 4 p.m. on Monday, August 14th, trader Teddy Keckstadt will be hosting a live, hour long webinar on Japanese Candlestick patterns. Teddy, the author of the Tiger 4x report, has been trading for 33 years and candlestick patterns have been instrumental to his success. For just $97, see how to use candlestick patterns to analyze stocks and options in order to capitalize on market swings, increase your odds of success, and decrease your risk. During this live webinar, you will learn when to use and when not to use Japanese candlestick patterns in this volatile market. Dispel the myths about this strategy and see just how much the mastery of candlestick pattern recognition can impact your trading. Visit TFNN.com today. TFNN, educating investors. You might think that if you want to be successful at trading in the stock market, you're going to need a crystal ball. After all, it's impossible to predict the future, right? Like any endeavor in life, before you decide it's impossible, get some advice from the experts. You might find that it's not so impossible after all. For daily market overviews that give you direction on the key indices, selective stocks, and commodities, subscribe to the opening call newsletter at TFNN.com. The opening call newsletter is written by Basil Chapman, creator of the trading methodology known as the Chapman Wave. The Chapman Wave up-down sequence gives you an edge in identifying price turns, finding the peaks and valleys in stock prices.  First-time subscribers also get a 30-day money-back guarantee. If you're not satisfied, let us know and you'll get a full refund within 30 days of signing up. TFNN.com, Educating Investors Steve Rhodes started his trading career as a student almost 20 years ago, and the student has now become the master. Steve won the prestigious Timer of the Year award in 2018 and barely missed that mark again in 2019, finishing it number two for the year. An amazing accomplishment. Steve Rhodes is committed to sharing his techniques and knowledge with anyone who wants to learn, and he shares his vast amount of trading knowledge every day in his Mastering Probability newsletter. Steve's award-winning newsletter, Mastering Probability, is delivered every trading day with updates throughout the afternoon. Sign up for Steve's Market Newsletter, Mastering Probability, and you'll receive access to seven of Steve's educational webinars absolutely free. At TFNN, all our newsletters come with a 30-day money-back guarantee, so you have absolutely nothing to worry about. Visit TFNN.com and try Mastering Probability 30 days risk-free today. TFNN, Educating Investors. Three at 1-877-927-6648. Internationally at<PHONE_NUMBER>. All right, folks, so we've still got that mix back out there. Let's take a moment here. Let me switch screens. Let's just take a moment. We're going to take a look at the equity markets and the questions that have come in. Let's do this first. Let me switch back to a different screen, and I want to just share with you the market breadth. So we get a feel for what's going on inside, at least the S&P and the NASDAQ 100. So this is the S&P chart. Right now, on a 30-minute basis, we're in a slightly negative market breadth. What I mean by that is there's 155 instruments trading below the support level, the bottom of its daily profile, versus 142 above. So it's a little bit of a toss, but it is still a negative market breadth out here for the S&P. Inside the NDX 100, this is, again, the 30-minute timeframe that we're looking at. We've got 31 above and 22 below. So we've got bullish on the 30-minute for the NASDAQ, bearish for the S&P 500. Let's go take a look at those other four timeframes, 60, 240 daily and weekly. We begin here by taking a look at the S&P 500, bullish on the 60. It was bearish on the 30. It's bearish on the 240, bearish on the daily, bullish on the weekly. So all this suggests CHOP, a choppy, choppy market. So if we take a look at the NASDAQ 100, you're bullish on the 30, you're bullish on the 60, but bearish on the 240 and the daily, bullish on the weekly. Again, a choppy type market out there. So we just want to set those parameters. Let's see how long as we're on this black background screen, Peter usually wants to know what's going on inside the Advanced Client Oscillator. So let's just flip over to that. We'll take a look at the New York Stock Exchange, AD Oscillator. And right now it's headed towards the oversold territory. If it gets down to the minus 150 level, that would then get it into oversold territory. So now let's go switch back and let's go take a look at what's going on inside the equity markets out here. To do that, we're going to switch screens. Give me a moment here. We'll get to those white background screens. We'll take a look at the ES, the NQ, the YM, and the Russell 2000, the RTY. If we take a look at the ES Mini, this is likely going to generate a TD9 count bottom. The reason that I have to say likely is today price must close below the close of bar number five. That close out there was at 45, 18, 50. As long as that unfolds, then you've got a TD9 count bottom that will confirm today and complete tomorrow. As I mentioned in the update, that we've got a new bullish structure daily profile that is attempting to form. The bottom that is at 44, 69. The top is at 45, 50. And it close above 45, 100 today, as long as this profile holds, we'll suggest a rally into the top of that profile, which is also where that oscillator and change line is at the moment. The NQ, a similar pattern today, is likely to become bar number nine of a TD9 count. It'll confirm that as long as today price closes below 15, 354, 25. If it does that, the pattern completes tomorrow, and that should take price up to the 15, 524 level. Now, the NQ, I did mention that it was trying to form a new profile. We don't see that on this white background chart. I'm going to flip back to my other set of charts just to at least provide you with that data. The data goes like this. Again, this will not be confirmed till this evening. But the bottom of that profile, our support is at 15, 079. The top is at 15, 551, and the center is pretty much center-ish. It's at 15, 315 out there. So you've got TD9 counts for the ES and the NQ. The issue here is the Dow is not participating. It is just, it has a sell the deep point pattern, but which has basically led to a consolidation with the inside of this profile. We have seen a couple of closes below the bottom of that profile, 35, 267. So it's just set up a little bit deeper consolidation range to the side. Now bar number eight is likely going to form today inside the Russell 2000. It's one day behind what the ES and the NQ are showing. We can see that the Russell has pulled back to a level of support. That can be a bottom as well. That's at 1906. But you really need to see that TD9 count bottom pattern confirmed. Today you need to see a close below the close of bar number four. That's likely going to happen, but we don't know for sure. That level is out at the 1955 10. And tomorrow you would need to see a close below 1930, 810 in order for the Russell 2000 to generate its TD9 count bottom pattern there. So how are we going to put this together? Well, one, we know we've got some choppy markets out here, but the ES and the NQ are signaling to you and I that they want to rally after they complete these patterns. And I believe it's those new profiles that are just simply adding to that signal. But again, it's only 1122 in the morning and we can't really call those new profiles. Let's say we can't guarantee them. Tomorrow we would be able to guarantee them and the next time later this evening we might be able to do that as well. So now let's go switch over. Let's go take a look at some of the requests that have come in. We don't want to get behind on those. The first one coming in from Hector and Patty, and actually Hector wanted to take a look at the A to B equal CD patterns inside of CVX. So let me just stay right here for a moment. Then we'll switch over to my black background charts. If we take a look at the daily timeframe for CVX, we don't see any kind of a topping signal. We see price trade above the top of its profile level as well as this green oxygen change line. It's bullish. In the weekly timeframe, you're trading above the top of its profile. You closed above it last week. A second close of 161.14 will suggest a further move higher. We've got a consolidation inside of the monthly profile, monthly profiles between 143.97 and 189.68. It has an arrangement to mitigate our top. So we don't really know what's going on in the monthly chart other than the weekly consolidation between profiles. But it does look like the daily and weekly are suggesting that price wants to continue to move higher. Now let's go back to those black background charts out here. And let's go ahead and pull up the tool that we can use to calculate those A to B equal CD patterns. Let's actually get over to CVX. That would be most helpful. And what Hector was focused on. So Hector, I want to take a look at this with you.  And one of those is focusing on the A to B equal CD pattern. And what Hector was looking at, he wanted to start here on the week that began May 29th out there. And that low is 149.74 is the A point. For a B point, what he'd like to use up here, and that's fine as the high from July 24th, that high out there, 1.6904. Now in the retracement, it was a 54% retracement. Last week, what we saw was price close above that 1.6404 level. That 1.6404 level had volume of 35 million shares. And last week, this passed it with 46 million shares. So this is suggesting that there is an A to B equal CD to the upside, that coders should take price to 170.52. Now, that's on the weekly timeframe chart. And yes, Hector, what you guys drew in there is absolutely valid. If I were to try to validate that A to B equal CD on the daily timeframe chart, I wouldn't be able to do it. Why? Because you were starting back just, and you probably saw this as well, but I just want to make sure that you did see this. If we, what we're using, you're using, let me just make sure, you're using the low from the week of May 29th. So now I want to get back to that timeframe. And that would be right back here, May 29th. So, no, I'm sorry, it would be right here. May, it was June 1st, so that was the week of, the reason I can't use that as the low for this on a daily timeframe is price retraced all the way back into it back on June 23rd. But I'm going to use that low, so that's an effective low. But we take a look at a daily timeframe, the daily timeframe on July 24th did volume of 9.7 million shares. And yes, price closed above it on Friday when it closed at 164.15, but it was 6.6 million shares. We typically don't see that. So it's a bit of confusion out here, but I'll just say this, as long as price remains about 164.04, you likely are going to go, or price is likely going to go target that 170.13 area, 170.13 to 170.52 out there. So Hector and Patty, I hope that that helps you out. Thanks much for taking the time to write in. The next request coming in from Dan inside the Tigers and I'm going to flip back to the white background charts. Let me give me a moment to do that. I'm going to take a look at the banking sector, KRE. So give me just a moment, we'll get there. And it was really, the question was really just a general overview as to what we see in the chart. So the first thing that we see when we take a look at the regional banking sector, KRE is what? Roadsman to mitigator top. With what? Price consolidating with inside his profile. That makes 46.55 Dan a real key level. Why is that? As the price closes below it, it could be signaling to an IA change in trend. That would take us down to the 43.58 area. Steve Rhodes with CFNN, you're right back. The gold report. As a precious metal, gold is still king. It continues to hold the most effective safe haven and hedging properties across the global major trading hubs of the London OTC market, the US futures market and the Shanghai gold exchange. The gold report. Tom O'Brien publishes his weekly gold report every Monday morning for subscribers, consisting of coverage of the XAU, HUI, GDX, the dollar, bonds, the South African Rand, as well as 25 different mining equities with specific buy sell recommendations. The gold report. New subscribers get a 30 day money back guarantee so you have nothing to risk. Subscribe to Tom O'Brien's gold report newsletter now at TFNN.com. And now they are expanding their reach with the Tigers Den available to all Tigers and Tigresses for just $1 for the year. There's no catch or added costs when you join our community of traders. In the Tigers Den, you can look over the shoulders of Tom O'Brien and the other TFNN hosts while they analyze charts during their live Tiger TV programs and join an interactive trading community with hundreds of members exchanging ideas interact with other Tigers and Tigresses as they share trading ideas, news analysis, and discuss the market action all trading day, even at night and on the weekends. The Tigers Den at Discord is accessible on mobile or tablets as well, so it's always at your reach. To sign up today and become a part of this educational community of traders, just visit the front page of TFNN.com. Sharpening your skills as an investor is like getting better at playing a musical instrument. You have to practice, sure, but you also need excellent instruction from experts. At TFNN, you'll get advice and guidance from the authority and technical market analysis, and it's not just dry, tedious text either. TFNN airs live financial content streamed live on TFNN.com and TFNN's YouTube channel with Tiger TV, live every market day from 8.30 a.m. to 4.00 p.m. Eastern for free. Each host is an experienced trader and gives their take on the market while taking calls and questions live from around the world. From the moment the market opens until the closing bell sounds, Tiger TV has eight different shows with expert hosts to help you make the right moves with your money. Watch online at TFNN.com or on TFNN's YouTube channel and become the investor you were born to be, TFNN. Educating investors. TFNN.com. Then hit Watch Tiger TV. That's TFNN.com. Then hit Watch Tiger TV. I've got folks who are taking a look at the charts here for the regional banking sector, the KRE. We've established on the weekly daily timeframe. You've got a roadsman-dominicator top. You've got a sideways consolidation with inside profile closed below that level. At $46.55, the bottom of that profile would suggest lower price. Now, I said lower price, the target being $43.58 to the downside. We don't have a topping pattern inside the weekly timeframe chart, but that would really be the next support level that stands out, $43.58. Below that would be $40.52. The monthly chart, prices trading within, prices were closed above last month, they closed above the top of its profile, still kind of too early. That level, the top of that profile is at $46.84. So that would suggest that it wants to rally further, but you've got to pay attention to the daily right now and the weekly chart. So it's really the daily. That's the one that we need to keep our eyes on. So Dan, I hope that that helped you out with regard to KRE. And thank you so much for the request. The next request is to take a look at ticker symbol. Oh, was it take a look at gold? So that next request came in from Jimmy D. And his question was, has gold or the GLD bottom? So for that, let's go take a look at this set of charts out here. This set of charts, we're going to answer that in one fell swoop. So what we really want to focus on to answer that question is gold versus the GLD. Oh, I don't have the GLD up there. Thought I did. So if we take a look at gold up our left-hand side, you're going to see that today is going to complete the TD9 count bottom. Now, this is trading back into a prior TD9 count bottom. It went up to a TD9 count top. So the question is, do the TD9 counts work? Well, they typically do. In this case, the question is, will they? Well, there is that influencing factor that we took a look at on the US dollar index. The euro looks like it's busting through the lows. Once dead, lower. The yen looks like it wants to weaken and further its move higher. And there's a possibility the pound wants to take out. It's by the D point pattern. So over time, we'll find out here. And I think that time is within the next 24 hours or so. But yes, the question was, is there a TD9 count bottom? And the answer, Jimmy, is yes, absolutely. Would I be paying attention to GLD? Absolutely not. Because this is the underlying instrument. And I believe if we go take a look at the GLD, which we'll do, I'll put those screens up out there. I think you're also asking about the GDX. And here you can see that the GDX had formed a TD9 count bottom last Wednesday out there. So yes, we've got bottoms and we take a look at silver. It's also going to complete a TD9 count bottom today. Now, what should transpire at a minimum is price should move up to Tesla, Azos, that are in change line. In Gold's case, 1959 silver around 2334. Again, those numbers are going to change as price moves up and down. So that takes care of that question. Well, the only thing it doesn't take care of is looking at the GLD. So let's do that. Let's definitely answer Jimmy's question out here. Let's take a look at it. So let's put up GLD, not GLF, because that's not going to GLDD. That's not going to help us. And at the GLD, momentarily, we'll see this populate. Sorry about that. I think I got too much run in the background. And yeah, so it's TD9 count bottom completed on Friday of last week out there. And that says that price would need to close above the top of the profile. What we like about this is that price actually came back and it's tested and rejected. It's breakout level 176.66 out here. But it's really Jimmy. It's really the underlying instrument, the gold contract that you want to pay attention to, not the ETF structures out here. Not that we don't want to pay attention to them. They do provide us with information, but really it's the underlying instrument that we want to focus in on. So hope that helped answer your questions about gold, the GLD, the GDX, and thanks much for the request. Last week, we were taking a look at Micron. MU is the ticker symbol out there. And we said, or I mentioned, hey, we should get back and take a look at it. Now, Friday was bottom number eight of a TD9 count, John C. In order for this to form a TD9 count bottom, price today must close below, and I'll give you that level, that's going to be 67.65. 67.65 for MU. If price closes above that, this TD9 count pattern goes away. So that's the first element. Now, what price has done today, it's rallied right up to that green oscillator and change line. If price can clear that, even if the TD9 count pattern goes away on a daily basis, if price can get above that, that will still suggest that odds favor a further rally. Now, the further rally would then want to take on 69.14. That would be the next area of resistance. You're trading into the first level of resistance, again, that green oscillator and change line. So micron may form a TD9 count bottom, but if the rally continues, well, the answer is that pattern will go away. Do I have any other kind of pattern? It turns out we do. And what's that? That's the buy the D point. That would be a Gartley buy pattern. So, John, don't worry too much about whether it's just the TD9 count, just because Stevie said, hey, if it closed above that, then it's going to negate that signal. But here we can see the A to B equal CD pattern. We'll just simply draw the A to B in. I'll go ahead and move that over to the C point. Give me a moment so that I can grab it. There we go. So you can see we've extended well beyond the 1 to 1 level. And as long as we get a bullish reversal cannon, it seems like that is likely going to happen inside of micron today. Unless just the blank hits the fan, you're going to have a bottoming signal. So that then says, watch the resistance levels, which we've already discussed. On a weekly basis, we just have a consolidation with insider profile. We can say the same about the monthly timeframe. So, John C, thanks for remembering and reminding me to take a look at micron for you. And I hope that that review helped. Dan, inside the Tigersdale, let's take a look at GSM. So let's get over to... Oh, we didn't get those charts in. We will right now. GSM is... G... Where's that now? Sorry about that. GSM is FaroGlobe PLC. Trading out $4.79 with a powerful hammer candle today as prices pulled back to its breakout level. That breakout level being $4.61. You're going against a prior bottom out here with a swing point. This is on July 6th. July 6th, holiday time, one million shares. So far today, you've done 421,000 shares. It's actually pretty good volume. But I don't know how you really benchmark it against that July 6th day, knowing that that was definitely a holiday session. So here's how Steve would benchmark it. Price is pulling back and testing the bottom of its bullish structure daily profile. And if price does close below that low, that low, by the way, let me get here, that low is $4.78. It's going to suggest another run for the breakout level. Sometimes pulling back to the breakout area can be a bottom pattern. So if that's the case for GSM, for FaroGlobe, let's go take a 30-minute time frame chart because we should see on intraday time frames. And 30 is not the only time frame to use. You should consider using a 65-minute time frame as well. 130-minute, 195, those would be the primary time frames to use in analyzing your intraday charts. 15 minutes will work. Just fine as well and a 30-minute. So now we're looking at that 30-minute chart. And this shows Roadsman Dominicator signal, but it didn't generate that bullish reversal candle dance. It always makes me somewhat skeptical. However, price is back inside its profile. And so we do have a rally that's going on inside of GSM. What you're looking for, first I would say is for price to take out the top of that profile. But we saw that price took that out for three consecutive sessions and that should have led to higher price and that didn't. So I'm somewhat suspect as to suggesting to you that a price closed by $482 that you're off to $506 out there. But you've got the bottom pattern. You just don't have the signal. You don't have the confirmation of that pattern at this moment. So with regard to GSM right now I just have to leave you with watch the bottom of that daily profile. See what today's candle is. If you've got a nice hammer candle, that would be a beautiful thing as well. Steve Roads with TFNN. We get back from this break. We're going to take a look at Nvidia for McGuppy as well as the SMHs and of course folks, I'd love to hear from you as well. That's Steve at TFNN.com Anything will do. You might think that if you want to be successful at trading in the stock market you're going to need a crystal ball. After all, it's impossible to predict the future, right? Like any endeavor in life before you decide it's impossible get some advice from the experts. You might find that it's not so impossible after all. For daily market overviews that give you direction on the key indices selective stocks and commodities subscribe to the opening call newsletter at TFNN.com The opening call newsletter is written by Basil Chapman creator of the trading methodology known as the Chapman Wave The Chapman Wave up-down sequence gives you an edge in identifying price turns, finding the peaks and valleys in stock prices.  First time subscribers also get a 30-day money back guarantee. If you're not satisfied let us know and you'll get a full hand within 30 days of signing up. TFNN.com Educating Investors Everything in the universe is governed by the Fibonacci sequence. This mathematical principle is responsible for everything from the most aesthetically pleasing artwork to patterns in the stock market. To stay on top of stock patterns you can take advantage of sign up for the Fibonacci 24-7 newsletter at TFNN.com When you subscribe you'll get a weekly report from veteran day trader Larry Pezzavento on stocks you need to pay attention to and you can trust Larry's analysis. After all, he's got 45 years experience as a day trader. Larry will also provide daily charts videos and data on the key markets that he's tracking. Expect notifications from Larry on market movement you need to act on at any time. First time subscribers also get a 30-day money back guarantee if you're not satisfied let us know and you'll get a full refund within 30 days of signing up. Subscribe to the Fibonacci 24-7 newsletter today. TFNN.com Educating Investors should consider the investment objectives risks, charges and expenses of the direction chairs carefully before investing. The prospectus and summary prospectus contain this and other information about direction shares. To obtain a prospectus or summary prospectus please contact direction shares at<PHONE_NUMBER>. The prospectus or summary prospectus should be read carefully before investing. An investment in the funds is subject to risk including the possible loss of principal. The funds are designed to be utilized only by sophisticated investors such as traders and active investors. Distributor Foreside Fund Services LLC This program is brought to you by Vista Gold. Traded on the NYSE American and TSX under the symbol VGZ. Welcome back folks we're going to go take a look at the charts here for NVIDIA this is from a guppy inside the Tiger's Den and sorry I was doing a couple of things so the question was is the low end. What I can share with you is NVIDIA has certainly formed a buy the D point pattern it looks like this I'll start with the A point out here we'll draw that down to the B point out there that's also labeled B from a Chapman wave lettering standpoint I'm just simply going to move that A to B I'm going to try to there we go move that to the C point out here that's going to be right there and you can see you've made the 1 to 1 A to B equals CDN. Right now you've got that bullish reversal candle what that suggests that what NVIDIA should do is at least rally up into test an area of resistance the first level is 440-189 that is the bottom of its daily profile let me just check on my other screen just to make sure NVIDIA oh wait a minute NVIDIA is attempting to form a new profile right now the bottom of which is a 408-404 McGuffey so put that down on your pad of paper and the resistance zone and it is a zone because it is a bearish structure between 445 and 456 and at 449 you got the green oster and change line so price should target that bearish structured zone area 445 to 456 on the weekly time frame you got price last week came back and tested the bottom of its profile down to the 408-99 level so as long as that area holds that's good on a monthly time frame if at the end of the month we did generate or it did generate a bearish reversal candle then it would form a rose momentum indicator top right now to answer your question specifically did this form a bottom the answer is yes if we look at the 30 minute time frame we'll see that this also formed a rose momentum indicator bottom out there and now price above resistance at 418-34 so this should continue to run higher out there it's going to be that daily levels no it's not the daily there's nothing else really so NVIDIA should continue to move higher McGuffey if we go take a look at the SMH's that was your second request out here they too are forming a TD now they're forming a TD 9 count bottom and that's likely going to happen today price would have to get way up here did the 150 three-ish level we're at 149 to negate that as a possible signal but there's an A to B equal CD as well to the downside so you've got to confirm by the D point pattern you will have a confirmed TD 9 count bottom that pattern completes tomorrow and what price should do now let me just check on the SMH's perhaps there's a new profiles also a temp uniform let's just find out so I'm doing that research on my other screen out here no there is not so what price should do is run up to that 150 169 area and if it can overtake that then it should go target that oscillator and change line that's at 154 on a weekly timeframe prices you've got a new profile here that's a temp uniform so you'd like to see a weekly close above 147 55 McGuffey to confirm that daily signal that we're looking because the price close below that even if it's just below that it's a somewhat suspect but to answer your question right now yes the SMH's and as of 1145 in the morning are confirming both a TD 9 count bottom and a by the D point pattern the next request coming in from a Lori Lori wants to take a look at that IONQ out here so let's pull those screens up and she is looking for an entry point now we take a look at IONQ what we can see here is a rosement to mitigate her top that formed get to somewhere the screen too just to make sure there's where's that what did I do okay so right now you've got a new profile so you've got a confirmed rosement to mitigate her top you have a new profile that formed on a Friday of last week it is bullish in structure and what you'd love to see this do so it so let's do this here it's easier now I'm going to I have problems with changing screens I'm going to stay put so what we what we got out here was I wanted to see what are we so we don't have we got a confirmed top we don't have this confirmed bottom pattern what we just have right now is price consulting with inside its new profile level and that's ranges from 1464 to 1625 yesterday on Friday I should say price ran that whole gamut it ran up and tested the 1625 level tested the oscillator and chains I rejected that today we're back inside we're still inside that profile level I don't have a clear signal here Laura even though it took me a while to spin it out I'm spinning out now I don't have a clear signal here to suggest that you enter a position just yet instead I think you need to watch this a bit more why because this could be signaling an A to B equal CD to the downside pattern could be we had big volume inside this on Friday when I say big volume the volume on this instrument was about 51 million shares give you an idea today we're at 9.7 million shares I don't have a top on the weekly I don't have a top on the monthly chart out here so it's really about the daily and I just don't have a great feel if I go down to a 30 minute time frame chart what do we have here well now this is helpful because we have a teeny nine count bottom pattern and a price closes below the low of that pattern let me give that to you right now below that pattern is out at 1492 a price close below that that tells us that yeah we don't have a bottom at least on an intraday basis and that we're likely headed lower but I don't have a really solid reason to suggest that you enter a position now knowing that price we don't have a bottom pattern on the daily and knowing that price ran into resistance levels on Friday and so I would just stay put there but right back if you know if you see some other developments inside of IONQ please write back we'll be happy to take a look at that for you. Alton wanted to take a look at CHK so let's get over and take a look at those charts CHK and he is he'd like to start a position so CHK right now trading out at about $84.23 it's really $84.09 I've got a little bit of a delay here you have a new profile that formed last week price is likely going to go target the $81.90 level that's as long as price close below $84.28 from a topping standpoint on a daily basis the only top that I potentially have is a is a wave 7 top so we do have a top in place wave number 7 so it says what you're looking for an entry point you've got to wait and be patient odds favor move back to $81.90 and then what we'd be looking at Alton as price approaches that level is do we have some bottoming signals on the intraday time frame such as the 30 minute out there if we take a quick peek at the 30 minute chart right now you've got arrangement to indicate a confirmed bottom for price not being able to clear that oscillator and change line this is suggesting to you and first it's a neutral signal and it makes this pattern somewhat suspect out there so be patient on this one as well just like Lori I think this one is going to require a bit of patience Microsoft was requested by Nancy inside the Tigers then let's put that up on our screens out here Microsoft right now let me see what is this printing out exactly printing out at 30 2363 and what do we have I don't have a bottom I don't have a bottom signal bottom pattern if anything Microsoft negated it's TD9 account bottom hmm a bullish reversal candle I can see where that would confirm a bottom we don't have that out there you've just got a little bit of a rally now what's not shown on this screen here Nancy that is shown on my other one is a new profile so your new support level is 32080 your resistant zone because it's a bare structure profile is between 327 and 330 so those are the areas to watch out there I say close below 32080 is going to suggest lower price on a weekly basis we're trading below profile we close below it on Friday it's got a TD9 account top that suggests to move to 30759 out there your next level of support other than the 32080 level is at 31759 so that's what I see when we take a look at Microsoft I know you want an Apple as well I'll put those charts up on our screen right here they're streaming inside the Tigers then you'll be able to take a look at those during the break out here but here's what we can say right now as it gets populated I don't see a bottom pattern the question is is Apple also forming a new market profile and for that answer the answer is yes I'll give those that data to you as soon as we get back to the link if you're looking for potential trading setups in the stock market then rocket equities and options report is a newsletter you should try Tommy O'Brien delivers options and equity trades when the markets present them using a combination of fundamentals and technicals sign up for rocket equities and options report today with a 30 day money back guarantee so you have nothing to risk for all the details and to start your subscription today visit the front page of tfnn.com tfnn educating investors you might think that if you want to be successful at trading in the stock market you're going to need a crystal ball after all it's impossible to predict the future right like any endeavor in life before you decide it's impossible get some advice from the experts you might find that it's not so impossible after all for daily market overviews that give you direction on the key indices selective stocks and commodities subscribe to the opening call newsletter at tfnn.com the opening call newsletter is written by Basil Chapman creator of the trading methodology known as the Chapman wave the Chapman wave up down sequence gives you an edge in identifying price turns finding the peaks and valleys in stock prices get the opening call newsletter by Basil Chapman and your inbox every day first time subscribers also get a 30 day money back guarantee if you're not satisfied let us know and you'll get a full refund within 30 days of signing up tfnn.com educating investors everything in the universe is governed by the Fibonacci sequence this mathematical principle is responsible for everything from the most aesthetically pleasing artwork to patterns in the stock market to stay on top of stock patterns you can take advantage of sign up for the Fibonacci 24 7 newsletter at tfnn.com when you subscribe you'll get a weekly report from veteran day trader Larry Pesavento on stocks you need to pay attention to and you can trust Larry's analysis after all he's got 45 years experience as a day trader Larry will also provide daily charts videos and data on the key markets that he's tracking expect notifications from Larry on market movement you need to act on at any time first time subscribers also get a 30 day money back guarantee if you're not satisfied let us know and you'll get a full refund within 30 days of signing up subscribe to the Fibonacci 24 7 newsletter today tfnn.com educating investors hosted at discord tfnn has been educating traders for more than 20 years with live programming hosted by a variety of professional traders during market hours the tiger stand available to all tigers and tigers for just one dollar for the year there's no catch or added costs when you join our community of traders sign up today and become a part of this educational community of traders just visit the front page of tfnn.com you back folks so Nancy you got new profiles you also have a TD 9 count bottom inside of Apple that will form today so long as price closes below $179.80 a price were to close above $179.80 and I don't know what it's going to do $178.13 right now but a close above $179.80 will negate the TD 9 count bottom there'll be there will be no other bottom pattern that I see out here so you're looking for Apple to not rally much further out there then you'll get your bottom and take place as price should then target its oscillator and change line that's up to $184.95 level the top of its new profiles at $182.88 so mark those levels but really the $182.88 is the first area the oscillator and change line is going to change in prices price moves up and down your support level is at $178.13 and that is a real strong support level the reason I say it's real strong even though it's not showing on my screen the center and the bottom are in the same position so if you see Apple close below $178.13 being long is not its message and said that would suggest move back to $175.31 that doesn't mean that you can't remain long that would just really what I'm really trying to say is you should prepare for lower price out there but right now you've got a TD 9 count potential bottom out there you'll know by day's end. McGuppy wanted to take a look at mosaic out here let's take a quick peek at that MOS is a ticker symbol that's not it let's try that one more time out there we take a look at mosaic mosaic informed a sell the D point pattern McGuppy this is back here on August the 10th so that was back last Thursday right now price gaps down inside its bullish structured profile its support level is $39.64 to $39.94 that's where the buy the dipsters are located but at price close below $39.64 they won't show up again until about $35.95 to close out the show folks let's go take a look at the NQ it's intraday charts out here the level to be watching in my opinion and it really comes from the four and five hour charts here is the resistance of the top of their profiles and that's where price afford they formed roadsman to minicator bottoms on Friday of last week and where the rally ran in resistance with the top of those profiles and top of that profile is up at 15 to 21 now the current candle sales that we're in does not close till 2pm that still could act as resistance but that's what you're watching for days in a price close above that we are likely rallying further inside of the NQ folks stay tuned for some great programming I'll be back with you on terrific Tuesday actually I'll be back around 3.15 with Tom I just got to figure out what it is we're going to talk about but have a magnificent marvelous Monday and I'll see you tomorrow take care


So I got a warning so I will not cover any US products or any US company issue and I'm not here to give a demonstration but we will go over the technology a little bit agenda for my speech today something about the motivation why we got this electronic passports what does the government think about electronic passports some basics and probably you you heard about this cloning thing who of you guys knows about cloning passports only few so I will cover this and how to use a clone passport to attack the systems like the reader and the inspection database behind we will cover some stupidity on the basic access control and the extended access control the extended access control seems to be the silver bullet against cloning and doing everything nasty with it and some unexpected risks at the moment so all of you guys know what is the motivation to get biometric into the passports and for the visas this is actually the recovered visa they found at ground table so I don't know if he's still on the watch list but they found some evidence that he is involved so that was the main motivation to raise the security for the US borders and to improve the border security by using biometric solutions there was this initiative so the government after 9 11 got a dream and the dream is telling so we have to divide high-risk travelers from medium-risk travelers and lowest travelers if one of you guys come in the first time to the states they have to create a file on you put your fingerprints in and a picture of you so you are at this moment a medium risk travelers at the moment you're crossing the border about 100 times a year and nothing happens and you're not on the watch list you are a low risk traveler and if you are coming from a suspected country or you have a common name like Mohammed at something like this you end up on a watch list and be investigated as a high-risk travelers and the government dreams about this automatic multi biometric entry gates so there's a normal passenger just waving his electronic passport putting his fingerprint on it or looking with his Irish scan into a camera and the magically the door opens and he is in while for the medium and high-risk travelers the door stays closed and they have to check an inspection officer and the officer is making investigations and by the way it saves a huge amount of money on personal especially for European entries asking the security notes and all the security stuff over the time and these are general and global print shops they know how to produce micro ink they know how to make counterfeit safe banknotes they know how to use special holographs and putting it in and making special sewing on your passport cover and gluing it together so it cannot be split anymore and stuff like that but as a known for IT security know how do they have a history on IT security on cryptography no so they have never done actually an IT security project so what's coming out is this security print shops are going to ask the smart cut industry and now we got a problem the smart cut industry is focused on selling their products and advocates multi-purpose use so some of the original ideas for the electronic passport you would have a multi-purpose use we will get the identical design for the national ID cards this card can be used for electronic banking for e-government you don't need to go to your DMV you just put in your ID card and to a reader on your PC and you can cryptographically signed electronic signatures and don't go in person anymore even in Estonia they made this year they have something like multi-purpose smart card based ID card they made this option so that the citizens are allowed to vote using their ID card and normal PC and use it for email encryption and ID and travel document as passport and of course for electronic payment sounds it nice one card that fits all and let's have a look of the design goal so they want to use cryptography in PKI the best thing is we put all biometrics that's possible into this card if you got more biometric you got a higher safe level and of course it would be 100% secure and improve the facilitation something like a minimize time spent on ligament revelas once again sigmetting low and high risk revelas and minimize immigration time are all wonderful and then they came up with a design approach from the IKO and the IKO was setting up a standards group and all this group is stuffed with printing experts so they know how to make secure passports but even know IT security expertise and pretty soon they discovered oh we need some experts on the crypto we need to do crypto at the first design approach there was no cryptography so they thought oh we just put in the files into a storage and that's it and the very first IKO design doesn't care about cryptography and this scares even some experts at the governmental level and said no no no we cannot use we have to use cryptography otherwise it will be a nightmare so but no one knows anything about implementation and the whole thing now what was driven by RFID manufacturers and of course no one looked at risks and design goals you all know this keep it stupid and simple but they unfortunately don't know it and by the way the industry got a new standard for biometric encoding oh we got new encoding we have to put all this together into this passport and the next problem they found out was they got a problem with patterns typically if you store biometric data you are looking only for some points of interest like from your fingerprint and generate via tractor algorithm a type of hash and this hash ends up in a database so they don't put actually a full picture of a finger printed to a database they're just putting in the hash so it makes things easy to compare it's always easy to compare about the hash and look for collision but it's a tiny difficult to compare images even if they're put from different angels and angels and stuff like that so and as well as IKO decided to store if the facial image of the passport order like it as a JPEG or JPEG 2000 and they decided doing the same with the fingerprint the problem was all the most hash algorithm was patented by one or other company and if they want to use it on a global basis they have to do a decision for one hash algorithm unfortunately all this hash algorithms don't fit with the national fingerprint databases so every country is operating their own fingerprint database and using a slightly different hash algorithm and up to this time it was for instance not possible to compare a fingerprint from a US citizen using a hash from the FBI database with a European Europol database because they got complete different values so they decided just make a picture of the fingerprint and put it into the passport and we got here some compromises but we all know compromises don't work with security at all so let's have a smart x-course how the e-passport looks today and how the e-passport is implemented from the German point of view by the way all this pictures are public domain I put the reference behind so actually as far as I know I can use it for this talk so the e-passport is most likely called MRTD this stands for machine readable travel documents and is known as electronic passport the specification was one done by this experts groups from the IKO and the enrollment was planned on it on a global basis this is one actual picture from the e-passport from Germany they decided to embed the RFID tag into the cover and not into the data page normally you have one of this plastic covered page where for instance Great Britain or Australia put things in the RFID tag and they decided we don't need a shield the passport could be readable even if the passport cover is closed by the way this is one of the decisions why the Germans can microwave the RFID ships in the e-passport and the British can't and no one sees the marks from the burning if the RFID tag is embedded into the cover if you do it with a British passport you most likely melting some plastic on this page there's an alternative method of storing data so right now it's possible to store biometric data or hashes as a 2D barcode under the facial image and we have this line it's called MRZ that stands for machine readable zone and this will play a second role for authentication and cryptography if you look deeper at the electronic passport so let's look for the data layout of the electronic passport they invented a huge branch of new coal names we have to deal with the LDS that stands for logical data structure and the data is stored in DGs DGs data groups some of the data groups are mandatory other optional some of this data groups are like slightly controversial discussed for instance that the British wants to have an Irish image inside the data group the German decided not to use Irish images you can look for the actual health status if you do the immigration and you can check if someone was consuming drugs or alcohol it's not a problem GB but probably in Germany so and it's not illegal in Germany to travel to travel drunken as soon as you're not driving the car and so they decided not to use the Irish image in Germany we have a special file that's called EFSOD SOD stands for security object data and this is a file that holds the cryptographic signatures and we have the EFCOM you can compare to a directory that lists the existing data groups all data is stored in VR encoding like ASN1 but it's not ASN1 that's important and the data group 2 up to 4 uses CBEFF for encoding this is a common biometric file format it's specified in ISO 1, 9, 7, 8, 5 we have in Germany some unique security features so normally if you activate an RFID ship you've got a unique ID this unique ID is fixed for each RFID transponder ship and this unique ID is needed for anti-collision unfortunately with this unique ID you are trackable and traceable without knowing so just to install read at the gate they know who you are and that you are holding a passport and stuff like that so they decided to to prevent tracking of the owner of the passport without access control by generating random serial numbers for this RFID ships so actually they produce a special tag and the special ISO 14443 tag can jump after it gots started or awaked by the radio field and use the random number generator and use this random number as unique ID and by the way you can use this random number generator just to put in any ID you like so another way to cloning RFID ships and the problem is Ikea MRTD specification don't require a unique serial number so by the way some countries will generate random ID and random serial numbers some countries don't so for instance some guys from Belgium and some guys from Australia highly trackable and traceable without a shield and carrying a device that identifies they exactly and for the Europeans offer the experts of the Germans and the British it is slightly a bit more complicated to track them but it's still possible but for the first phase you get this unique ID and they put in a method it's called passive identification and this method is mandatory for all passports and this method is the proof that the passport files are signed by the issuing country so if you get an passport each issuing country is operating your own CA and this CA is signing the hashes of the data of your passport and with this private key signed the public key can prove at the border control or at the entry if this data are manipulated or original that's all in theory and the document signer key is retrieved from the public key directory that's operated by the CAO and useful only if country would CA is known so actually this public key is right now as far as we know hardcoded in the R4D readers they read the passport and the inspection. This is a slide showing how the signed data works so we have all these different data groups then hashes generated over each of this data groups and over a list of all these hashes they are generating a type of master hash and this hash over the hashes of the data group is signed by the country CA and stored at the EF sort. By the way who of you guys thinks putting a passport on the monitor is a secure and safe way to hide it? Isn't it a nice idea? No one can read my passport because we put in a cryptography so they have this method it's called basic access control and actually they're using the credentials they are printed on top of your passport so to grant access to the data after the inspection system are authorized the authorization is done through the machine readable zone so what they're actually doing is they are generating over the document ID and your six digits date of birth and the document expiry date and triple S key and using it for identification against the passport to read your data that are stored on the passport and that's exactly what they're doing to protect the privacy of the passport holder even some European passports for instance Belgium don't have basic access control they can be just read by walking through and yeah so what do we have with the basic access control so the access key is printed on top of the passport and what politics is always denying oh it's illegal to make copies of banknotes it's illegal to make copies of passports who of you guys experienced that his driver's license or passport was put on the Xerox machine because you want to rent a ski or you want to check in a hotel and it's highly crowded and yeah we got some up and they're just making a Xerox and you don't know what's happened with this document anyway all this data needed for accessing the machine readable zone is as well stored in many private databases like airlines banks and so on credit history and no one knows what's happened to this database if there's identity theft or someone breaks into the database and retrieves all this data and as soon as this data unknown there's no protection for your facial image for your biometric template you can just tracked traced and read from behind so and you don't need to do a full read of the passport it takes sometimes up to 40 seconds but if the data unknown you can just start with the basic access control handshake and you are still traceable so the random unique idea is simple worthless if you have access to the data you need for generating the access key or to generate the first phase of communication to your electronic passport and access to the content of the logical data structure data would want it to is possible even access to the SODS possible so you can try to run a brute force attack against them the company signing CA after my last talk last year at blackhead I mentioned this I make a small demonstration and they are telling us oh yes but you know basic access control was just today today and we will have in the future extended access control this will take care of all this needs and this is a highly cryptographic thing and you don't have to worry about your privacy anymore so what's the idea of extended access control the extended access control should prevent the unauthorized access to biometric data unfortunately it's not international standard so each country decides what data they want to share with what exact country and it's implemented by the individual issuers and only share with those countries are allowed access so in theory for instance if Germany wants to share the fingerprints and the biometric data with their citizens between the states they're setting up a deep project for exchanging certificates and algorithms and putting in additional software into the readers and they are pointing out that access is only possible the certificates from the suing countries so if at the point of entry at the port or at the airport the inspector wants to read your fingerprint by the way it's a gift image and you need to get a certificate from the suing country and they are telling all the time this certificate is only valid a really small amount of time and only at this small time slot you are able to read the biometric data from the passport hmm unfortunately just imagine you're a train conductor and you have to check if the tickets are valid and if the passengers on the right train and if the ticket are for the right term date and time but you don't have a clock so how do you check it how do you check if the ticket is valid and we got the same problem because they forget to implement a clock inside the machine reader travel document so you've got a small amount of time you got a certificate for unlocking the passport and for reading the biometric data but the MRTD does not have any reliable and secure time information and without this time information once the CV is captured all MRTDs which has been read using a CV certificate that's the name of this unlocking certificate issued earlier could be accessed without any problems and the MRTD could not verify the validity of the timestamp from the CV certificate because he don't have a time signal he don't have a time date so he cannot check but you know the politics are telling you we are safe we have only a issued certificate for a small amount of time even they're going to save the last time of access and if the next CV certificate has an earlier date it's going to reject so if someone is using a full CV certificate there's an issue for this an issue date far out in the future the path is rejecting all earlier CV certificates so what possible attack could be just faking GPS or just faking GPS time signal for the data center they are issuing in Germany the CV certificates and trying to put the clock of the servers up to 280 and if they're not using windows or Unix machines and don't have this problem this is 32-bit clock overwrite and year 2000 problem most probably they can issuing certificates from the year 2080 and deactivate all issued passports with extended access control because after they fix the time all the passports get deactivated the next problem is a vote regime could misuse the CV certificate to obtain fingerprints from the passport holder you know the fingerprints are stored as a GIF image so you can make fake fingerprints and this is fake fingerprints it's possible to produce false evidence and the next glorious idea was we're using X 509 certificates but it's not possible to revoke certificates from the MRTD so CRL is effective not existing and everyone verifies seems to be secure but it's not possible to revoke a certificate so why do we clone passports last year we got a huge media attention on this and they are telling us cloning a passport is just normal behavior there's nothing dangerous on it and you don't have to care about this because it's all cryptographically signed so the normal text inside the passports are actually read only and data could only be retrieved from the issued passport and one idea is just retrieve the data from an issued passport just read it then you have to microwave your original R4D ship from the from the state and now the clone tech behaves like an official e-passport and that's where the fun part starts but what the industry is not understanding I had long phone conversations with the head of research and development from an e-passport reader company and she is just not believing oh if something is not put in the right way we are triggering an exception everything will be fine but you can put in an exploit and extend your official passport and putting in some malware inside the MRTD and the nice thing about this exploits this that could attack inspection systems as well backends or databases behind this and you can imagine what's inside this database behind your passport inspection system and I guess they are using some standard of the shelf components like oracle or dv2 so what's happened if someone is using a drop database or an alter table or just changing some data inside now let's have a closer look to the inspection system first of all there came this all inspection system should be evaluated what does it mean no one is telling us what does it mean to evaluate an inspection system right now they're using off-the-shelf PCs and off-the-shelf PCs are far too complex to be formally validated for correctness otherwise we don't have to deal with malware with viruses with crashing operating system and stuff like that then that is how to use JPEG and JPEG 2000 we all know JPEG 2000 is a very complicated format you can easy produce huge images allocate a huge amount of memory it's easy to exploit I put in some CVE numbers we found about JPEG 2000 exploits and we got this nice tools like Metasplot and other toolkits that make it really easy to put in some shell code in your passport isn't it nice and that's a vendor actually a vendors design of an e-passport inspection system you know it was designed for Windows XP even not for Vista so and actually we found no security improvement to the software the stack is still executable and imagine what's happened if you just ask an officer oh did you mind putting in this USB stick into your inspection system and make it double click on this program you think they're going to do it but they're putting your passport on a reader and there's a difference it's just memory 72 kilobyte memory that's got read into his machine and executed that's a nice thing they just don't look for the procedure so actually the LDS is passed part by part and after the whole structure from the passport is read into the reader into the inspection system it can be validated just after this so they have to build all these hashes inside the machine and then after they have decoded this highly complex tree of ASN1 BN coding after they got through all these different stages and highly complex processing units and I know what I'm talking about we have implemented this e-passport design and it was damn hell of coding because they don't care about standards so after all the thing is decoded and passed and not exploited and all the structures are happy as they can validate so first they read the data then they pass the structures after this they have to decode the payload and finally this they can verify the document cryptography it's something like you go to an ATM you put in your card then you get the cash and after you got the cash you put in your pin number and they are telling you is it right or not cool isn't it I would like to have such ATMs so and right at this moment many vendors are happy if they can read the passport from a different vendor so they have actually the problem to read the passports and no one has checked for illegal structures or even for some malware onto it the next problem we have to deal it our biometric data so it's this moment data should be reduced to hash only but fingerprints are still thought as pictures so reverse engineering of fingerprints is possible and this is compared to any best practice in IT security don't give up your credentials and even don't make them public available and we got this nice chaos of standard so all the experts from the Ikea now only have to use as and one you know how as and one works normally you have a legs you generate a grammar you put in your data structures in C and they're putting in into it this or you make a formal description of the as and one data structures and as and one generator is generating a parser for you and an encoder so you got two pieces of software and then you put your payload through this encoder you got the data encode in as and one and after what you can put it to the parser it's like valid XML and you got it back in your C data structures but unfortunately they don't ask a student in the first semester who knows how as and one works they have done it a different way they make the encoding by hand and they make as mistake without generating a legs they saying oh we have to put encodes this in this specific byte pattern and the structures actually not valid as and one so it looks like as and one it's 90 percent like as and one but you cannot use an formal as and one encoder because it's not like as and one they just don't understand how such meter formats encoders are working the next problem is we have a lot of redundant meter formats for biometric data and they use JPEG images but they encoded the JPEG image in a different meter format like the CB EFF common biometric file format you know why oh the industry for from the smart cut and already came up all we designed a cool format no one is using it we have to put it into the passport the next problem is if a signing he got lost the whole country is doomed I'm pretty sure sooner or later some of these keys got lost not in the US probably not in Germany but they are far too many countries outside we have sometimes problems with the structures in the countries sometimes we got the country that converts to a work to regime we have sometimes political instability and in some of these cases it's most likely that a signing he got lost and then anyone can produce this false passports and the whole design was made by politicians and not by T security experts and of course it's possible to manipulate data so I went with a short version of this presentation to to a K meeting or to the security document word and I got a huge amount of very interesting quotes the first one trust us we are the experts we know what we are doing the next was a nice quote from one we removed the standard from the Ikea website now we are safe the next standard is it's for my own State Department in Germany so the world was using the primary purpose of the passport he read it there's no security risk at all and the next I really like I really like this the R3D ship will be protected by security features of the printed paper in the passport wait a minute why why do we make this R3D passports we want to raise the level of counterfeiting passports with biometric data and normally the R3D ship would increase the security and not needs to be protected by the printed paper of the passport so where's the need for an R3D ship if the ship must be protected by the printed paper why can't my person protect it by the printed paper as well and we just forget all this R3Ds I don't know and the next quote is one of my favorite once again after I gave this presentation it's a security document wrote in London a couple of high-level passport security experts are here and they're denying there's any problem and after I gave this I got that really nice quote it's right that their security flaws could harm an IT system but we have to keep in mind the E-passport is a security document and has nothing to do with IT systems but it runs on Windows XP so isn't it funny and if they don't change their thinking about IT systems and structures and how to audit the state things and where the risks and pitfalls I don't know how can they I don't I have no advice for them they are experts out in every country they are IT experts they are experts on structures and encoding but if they don't listen to them it's not our fault so and that was pretty much my update for the last year what we have done on electronic passports and we can start the question and answer session first that's here and after I'm finished here I think I'm moving to the Q&A room for additional question and answers so yes yes the question is why are you still keeping the R3D on the passport if there are some questionings and one of the besides is they wasted so many taxpayers money they just can't tell us oh sorry we are wrong by the way we wasted billions of dollars worldwide but we have to live with them so I think it's about personalities and reputation of the print shops and it has nothing to do with IT security and anti-terrorism and counterfeit documents yes I have done some tests with okay so the question was what happened if manipulated pictures get through an RFID reader or get through customs so I've tried this with some manipulated images at a conference I'm not going to tell what conferences was and not the vendor but actually one inspection system gets in an infinite loop reading the things and another just crashed so we got a blue screen and if you are able to get a blue screen you're most able to put in exploits everyone is welcome to prove I can't check you with any US passports but if some of you guys have one of this US passports properly you will be here next year at my position and presenting us the ultimate if inspection database take over world domination inspection owned applet just to apply to a new S passport I can't do it but I don't know if I inspire some of you guys next question yes actually they don't know how to do it they don't ask anyone who knows anything about IT security so and they had such huge time pressure and they want to do it all on their own so the group from the IKEA was a pretty closed group and they don't want to get as many external experts in because it was so complicated at that specific level the industry wants to push in so many different standards and so many different encodings they just want to keep the group as small as possible to make effective working so that was my point and I got a quote from a German passport manufacturer and he is telling me oh I know we know the whole thing is junk the whole standard is junk but we have to live with it and we cannot change it anymore next question yes can you speak up a little bit yes there are many parallels one of the problem is every time you want to create a protocol or security protocol by a committee and by compromises and not by public discussion you end up with such a mess like this IKEA passport so my advice would maker see of it put it on the internet make a public discussion ask the group for experts ask the security experts and not make a design by committee mostly the crowd is just smarter than you are next question okay and thank you