It's really, you know, it's really sentiment here. Just think about this. You know, this stock is not your ordinary name coming out with earnings. Welcome to Access to Trader, the number one community for those who are committed to taking control of their trading in order to achieve success, profitability, and longevity. Thank you for joining us. Here's Dan Shapiro to help you find your edge, master your process, and own your future. Hey guys, good evening, everybody. Welcome to another edition of TheAxisTrader.com. Nightly update show. Hope everybody is doing well. Hope everybody had a good trading day. Hope everybody is enjoying their lines. And again, hope everybody is happy. That's the most important thing of any single day after everything else, life, happiness, and all that crap that we have follows is just a gravy on top that we try to rationalize to feed our own ingots. So again, it's all about happiness, all about health, so hopefully both are in your life. So let's talk about the tape. So let's do a quick history lesson. Again, we blow the 20-day moving average. This was about three weeks ago, and in the midst of the 20-day moving average, why it was so important. Again, we lost this whole major trend line that we had for 2023. Again, did the market go straight down? No, absolutely not. We had some moves down, we had some moves up, we had some moves down, but all this was taking place below the 20-day moving average. Then we went all the way down to the 50-day moving average, held there for a couple days. Then we finally got below the 50-day moving average, and again, we went down three, four straight days, and now we're having a little bit of a dead cat balance in the last couple of days. And the question was, how long, right? That was the question for last night's video, how long can this dead cat bounce? Just like yesterday, the market started moving up. The market got pulled, right? The market got pulled. Just like yesterday, the only difference between yesterday and today's session was yesterday, the market came back like a rabid hyena that hasn't eaten in a week versus today. You can see here by the 60-minute view, we gapped today, and we went straight down, the queue's down about 50 cents in the day. The most important part is, it's not a question of, is that the end of the dead cat bounce? Because keep this in mind, all this activity is happening below the 50-day moving average, so we're one, two, three, four, five, six, seven. Tomorrow will be day eight below the 50-day moving average. Like I said, for me to feel comfortable, risk back on, we're going to have to reclaim back this 370, 371 area on the close where the coast is clear. The problem with getting back above the 50-day moving average is, well, you need some sort of cattle. We went through the entire earnings season, mixed bag of earnings as we all saw, Tesla, Netflix, Microsoft, Meta, Apple, Google, Amazon, and none of that really did anything, right? You had random days up, you had random days down, but ultimately we are here. We are below supply, and nothing good macro-wise happens below supply. Now, the question is, well, where's the catalyst? What's going to get us back above the 50-day moving average? Here's the answer here. Tomorrow is in the video. I believe tomorrow is probably the last bullet of sentiment. The bulls are probably going to hang on to for the near future. The reason why I say that is, all the other major companies are out of the way. Matter of fact, when you look at the landscape, the landscape of what's been going on for the last several days or the last several weeks, you're seeing pressure in S&P names and down names in energy, and today you saw pressure in retail, and you saw continued pressure with banks. S&P today downgraded selective banks, kind of took the cue from Fitch from a couple of weeks ago. I believe Moody's as well. I could be wrong on Moody's, but definitely Fitch. That took the pressure down. Today, Letter M, Macy's, which I still have a runner short overnight. You had Letter M and Dick's Sporting Goods, very light. Very, very light. Soft guidance, blamed consumer confidence, basically via credit card, the false that they're seeing or late payments, so that obviously didn't firm well. When you have the two strongest groups in Main Street, the Main Street America part of Wall Street, which is retail and which is the banks, and they're putting pressure, it's very, very tough to get excited. Well, what's the next catalyst up again? Is it possible everything gets negated because, again, bad news gets negated all the time, and the market a week from now is back above the 50-day moving average of a rallying, and everything I've been saying is completely irrelevant because the market deemed it irrelevant, but there's a flip side, right? There's a flip side, and that's kind of our reality. Again, we continue to build below supply, not only in the cues. When you look at the spies, right, when you look at the spies, the spies are one, two, three, four, five days, right? Five days, they had a dead cat bounce, got rejected off the 100-day moving average, completely rolled over. If you look at the IWM, there's no rally at all on the IWM. The IWM has been below the 50-day moving average for two weeks, had one update, and it's done absolutely nothing. It's in a stalemate. It's not a stalemate to go higher. It's a stalemate potential to get below this bottom channel. When you look at the diamonds, right, the Dow Jones industrial average. Now this is day four below the 50-day moving average, and now we're putting in lower highs below the five-day, which is the shortest term sentiment. So yeah, NVIDIA is going to be a big deal.  You just think about this. You know, this stock is not your ordinary name coming out with earnings that had a big run. You had stocks that had big runs, and then you have stocks that up 212% year-to-day coming out with earnings, okay? And it's trading like a low-float stock. So this has been on a tremendous tear. We had a phenomenal, phenomenal reversal today. Congratulations to everybody who caught the couple of pivots today through the downside and the NVIDIA. But these are the facts. I think with a 212% year-to-date type of scenario, I think in my opinion, and I don't know, right? I have no idea what's going to happen tomorrow on earnings. You could literally have, you could literally sit there with the earnings report in front of your face going into earnings, and the price action might completely go the opposite of your way. It's, when I talk about a gamble, it's a gamble. It doesn't take a lot of skill set into bet into earnings play. It's just, it's luck. It's like, again, it's like this 10 major league baseball games tonight.  At least you could watch a baseball game for three hours. It's pure gambling. Tomorrow you're going to see people yellow in on the long side. You have yellow in on the short side, and you have people destroy their account one way, destroy their account on the other way. And again, at least they have a story to tell or block post the right. But again, for all of us who are responsible adults, we kind of know, you know, the other plays, you know, leading up to the video, leading after the video is going to, to really command our attention for the short term. And here, you know, here are the numbers. You have the estimates for tomorrow. You have 8.25 for earnings EPS, and you have 44 and a half billion dollars for revenue. And again, in my opinion, they have to destroy their numbers to continue this. And again, I might be wrong. They might miss the numbers and continue to rally. But again, I think tomorrow is going to be a very, very important last bullet. Okay. I don't want to, you know, make it more dramatic than it is. But again, if you've been watching, if you're an active trader, you kind of know the significance of tomorrow's session. Okay. Do we continue the, you know, we get rejected and continue to build below the 50 day moving average and the video seals, you know, the faith of the bulls? Very possible. You know, can the video come out with a quarter and it's up 100 points tomorrow? Absolutely. The options market right now with pricing and I believe a 43 point move in either direction. We saw 500 calls. We saw 500, 400 puts guns. It's a crapshoot. It's an absolute crapshoot. But the most important part is what happens after the report. Look, the jury is out yet. Like I was talking today in the webinar, it wasn't one of those five star overnights just because we gave back, just because we gave back today's gains. Because again, at the end of the day, we still put in a higher low from yesterday's session, which put in a higher low from the previous session where it's going to be a very, very important is this five day moving average. In case tomorrow, in case tomorrow we give up the five day moving average and the five day moving average right now is 361 on the cues. That's going to be the most important part because right now they got rejected off the 100, they got rejected off the 10. The last area here, if they lose the five day moving average and if they do lose the five day moving average of 361, which is basically the line in the sand, then yeah, we're going to start coming back into recent lows from several days ago. So again, tomorrow is a very, very important day. I have predominantly stocks that I'm looking for follow through to the downside tomorrow. I don't really see any charts that are standing out right now. And I say buy me, buy me. It's just again, it's one of those scenarios. So 361 guys, that is the line in the sand going into tomorrow. Is it possible we have one of those sessions tomorrow that everything is quiet? Everybody's waiting for, everybody is ready waiting for the Jackson Hole, waiting for you know, the NVIDIA. Listen, everything is possible, right? Everything's on the table, right? Like I say, every single day, you have to be prepared and that's what we do. We are prepared every single day in the most important part going into tomorrow's session. I know that how important that 361 level. So we continue to tear, teeter, teeter, and the video comes out with bad numbers. Again, you don't need to convince me three times. I need to take some sort of Twitter poll of what people think is going to happen. We lose that 361 on the close on the queues. We're going back down to recent lows. So it's very, very important to see what happens tomorrow. You know, names that I like for tomorrow, we started shorting this letter M today, opening range lows, stock pretty much closed at the lows. Again, softness and retail, not a good look for Main Street. You know, listen, this thing starts confirming below today's channels tomorrow. This thing's going to get hit. Look at DKS for tomorrow. Again, another stock that got hit. Look at the 60-minute view. Look at the 60-minute view on Dix. This thing starts losing the 60-minute view. Dix has gone lower. It's only transitory, honey. I promise it's only transitory. So Dix looks good. Urban Outfitters reported after the close up a buck. But again, up a buck on our earnings. But we know what happens on earnings. What happens tomorrow if Urban Outfitters gives back its earnings and starts confirming the 50-day moving average, right? This thing's going to go lower as well. Disney, I've been watching for weeks and weeks and weeks. They keep on getting close to the bottom of the range and then keeps on balancing. I'm still watching it, guys. This is something that you should warrant your attention for the next couple of days, maybe next couple of weeks. But because if Disney starts losing the bottom of this channel here, again, this is nearly a two-month consolidation. It could be good, right? So it's something we definitely want to watch for tomorrow as well. Outside the bigger names, just to give you an example how sentiment has shifted a little bit, both Amazon and Google were upgraded this morning, right? Amazon was red. I mean, well, again, in a good market, you don't see stocks that are upgraded going back down. Tesla had a great two-day run, got rejected off the 20-day. I want to watch this thing. Let's watch Tesla again tomorrow. This thing starts losing back the 100-day moving average.  Maybe this thing starts going back to recent lows. The stage is set tomorrow. You've got the Fed. You've got the Fed. You have NVIDIA. All eyes obviously on NVIDIA. Again, if the bulls have one bullet, it's going to be NVIDIA. And the one thing that I will tell, especially through the new traders, guys, you have a long career. You don't need to gamble your account on earnings. You don't. I understand the euphoria is in the air. Everything wants its easy money. You guys remember what that sounds like? It's like when they were betting the 300 calls on Tesla. You guys remember that? Easy money. Easy money. It's free money. It's free money. It's free money. It's free money. Tesla at one point was 85 points off the recent run. So again, there's no such thing as easy money. Take your bites. You don't eat the whole cow. When you go into the restaurant, for example, you don't order everything on the menu. You order your specific dish. Take small bites. That's what this business is all about. Small bites, small bites, small bites. You don't want to be overly gordish, right? El Gordo. So guys, for all you guys who are thinking about yoloing in one way or another, again, if you want a long career, think back. Take a step back. If you're doing this strictly for the gamble, strictly for the joy, I wish God is on your side and hopefully it will work out in your way. Guys, have a great night, everybody. Let's see what happens tomorrow. And when God's help, all of us will be there. Take care.


Hello, this is Wei Wenchao. Welcome to Contractual Terms and Defects, Module 3B, Part A. In this part of this module, we will look at the differences between a PUF, a representation, and a term of a contract, and then explain what is an express term of a contract versus an implied term of a contract, and look at how we go about interpreting express terms of a contract when there is a dispute as to the meaning of what is something that is written in a contract. In many contract negotiations, there is a lot of back and forth communications between the two parties involved, and those communications have certain various legal status. So the three different types are a PUF, a representation, and a term. Let's go back to our friends Daria and Jamal to help us understand what is a PUF versus a representation versus a term. So Daria asked Jamal again, do you want to buy my Apple laptop for $500? This time Jamal says maybe tell me more about it. And then Daria says one of the following three statements. The first statement is, it's a great computer, you'll love it. The second statement is, it's got the LISMAC operating system, the third statement is, I'll throw in my laser printer. With the first statement, that's considered to be a PUF. It's only mere sales words that Daria is using to try to convince Jamal to buy the computer. As a PUF, if that statement turns out to be false, if Jamal does not love the computer or it's not a great computer, there are no legal consequences. The contract is still a valid contract. The second statement, it's got the LISMAC operating system, would be considered to be a representation. It is a statement of fact, which induces the other party to enter into a contract. We talked about representations in the previous module. And we'd also mentioned in that module that if a representation or a statement of fact turns out to be false, it is a misrepresentation and the other party can sue for misrepresentation to say that the contract is voidable and can be canceled. In other words, that's called rescission and the person can also sue for any damages that are suffered because of that misrepresentation. The third statement, I'll throw in my laser printer, is considered to be a term of the contract. It is an actual contractual promise by Jamal promising to pay $500. Daria is promising to deliver the Apple laptop and the printer. It is a part of the agreement. If that promise is not kept by Daria, then that is considered to be a breach of contract and Jamal could sue her for that breach of contract. There are two types of contractual terms, express terms and implied terms. Express terms are the ones that we know best. They're the ones that are either written on paper or they're stated verbally out loud by one of the parties. And both are considered to be terms when a reasonable person would believe that the statement was intended to create an enforceable obligation. In other words, they are terms. They're not representations and they're not puffs. Now with implied terms, those are terms of the contract. They're still part of the contract, but they're not written or even stated verbally. But instead, they are somehow implied by law. Now in what situations does the law imply terms? One or a couple of situations is where it's necessary to imply a term where it is an obvious consequence of the parties agreement, where it's something that is essential, that was missing in the agreement, but it's essential and an obvious consequence of the agreement. We need to just automatically imply it. Or it is required for the purpose of business efficacy. Another situation where the law would imply a term is to reflect standard industry practice. And also, based on common law rules for certain types of contracts, terms will be implied. One obvious example is with an employment contract. There is a common law implied term that to terminate an employee, they need to be given reasonable notice. And also, terms can be implied by government legislation that identifies specific contracts and requires specific terms to be automatically implied for those contracts. One example is under the Sale of Goods Act, which requires terms regarding the quality of the items or the delivery of the items to be automatically implied into sales contracts. To get a better idea of when the law will imply a contractual term, let's have a look at this quick quiz question. At this time, please pause the video so that you have a chance to read the question and consider your answer. Okay, so the question says, even if a lease does not expressly say that the item leased must come back in the same condition in which it went out subject to reasonable wear and tear, a court will imply such a term. Courts will do so on the basis that such a term, D, is in accordance with the usual industry practice and the industry the parties are engaged in. Now, let's go through the other answers before we explain why D is the right answer. A says it was clearly intended by both parties. Since it was not expressly stated that the items would come back in the same condition, we can't say that it was clearly intended by both parties. Now, B was clearly desirable just because it's desirable is not a basis for implying a term into a contract. And C would improve the contract, is also not enough to justify the implication of a term into the contract. We would need more than just mere improvement. The term would be the kind that's required to make the contract effective. And we skip to E is found in some leases. Just because it's found in some leases, but not many or all leases does not justify such a term being applied. Now, D is the right answer, which is basically saying that this term is a part of industry practice in the leasing industry. So whenever items are leased out, such as a car, it's normal in the industry to expect that that car be returned in the same condition that it was when it was originally sent out, but subject to reasonable wear and tear of that car, of course. Sometimes we need to interpret the meaning of express terms used in a contract. Remember that express terms are contractual terms that are either actually stated verbally or put into writing in a contract. And there are instances where if a word or a phrase or a sentence in a contract is written in a way that's not altogether clear and the two parties involved have a dispute as to the proper interpretation of that term, we need some legal rules to help us determine what is the appropriate interpretation of the express term. Now, the general rule that the courts apply is how would a reasonable business person in the party's position have interpreted the express term? And that's a nice legal statement, but whenever we use the word reasonable, it's not a very precise term. So we need some more guidance to help us determine what precisely is reasonable in a particular situation. So the courts give us a bit more guidance. So there's something called the golden rule. The golden rule says that we should start with the plain meaning of the words. In other words, it's called the literal approach. We look at the literal plain meaning of the actual words used in the contract. And to determine that plain meaning, the most obvious place to look usually is the dictionary. We look up the common meaning of a word that's defined in the dictionary. So golden rule says that we start with that plain ordinary meaning, but if by applying that plain ordinary meaning it leads to an absurd result, then we need to look at some other different interpretive approaches beyond the literal approach. Now these other interpretive approaches are the first is called the contextual approach. That's where we're looking beyond just what the definition is in the dictionary. We're looking at the actual party's intentions and the surrounding circumstances to determine what did the parties intend these words to mean. A third approach is called the contra-proferentum rule. So that rule says that we apply the meaning of the word or the phrase that is least favorable to the party who drafted the contract. Or in other words, we interpret the words in favor of the party who did not draft the contract. So we look at those two other approaches, the contextual and contra-proferentum and also the literal approaches, which is what we did in the first step. And we go back to the question. How would a reasonable business person in the party's position have interpreted the express term?