So I am going to, and you're, you're all ready to go. I'm ready to go. Awesome. Okay. I'm going to start the recording now. Good morning, everyone. I plucked the chat on the side. Hope everyone's doing great today. Interesting 24 or 48 hours in the market. So I'm going to talk today, present. We'll see where we're at with the time. And if I have time, then I will, uh, talk a little bit more about the action in the markets from yesterday to today. Uh, for those of you that don't know, my name is Melissa Armo. I own the Stock Swoosh. Thank you for allowing me to present today, David. And the topic, I guess, all day today of everyone is talking about indicators. So it's kind of funny because I really, everything that I do, I use my mind to actually figure out. So you're probably going to find today interesting when, when David asked me to talk about favorite indicators, um, you'll probably never thought about what my favorite indicator is, but we are going to talk about it. And again, if you have questions, you can plop it in the room. Uh, you can email me at Melissa, the stocks, wish.com, or you can call me today if you have questions or later this week at 9 to 9, 3200 gap. You can also follow me on Twitter, Facebook, YouTube or Skype. I appear on television and I try to put my TV hits, um, when I'm going to be on, on those, uh, social media sites as well. And I appear on Fox news and actually I was on Fox news July 5th. The market was closed that day and it's funny. I listened back to this segment when I was on, it was about two, two weeks ago and I discussed the possibility, uh, of another shutdown, which could mess up this market. So what happened is the market fell yesterday, gap down and fell based on COVID fears of another shutdown. And, and I'm not saying that we are a hundred percent are going to have another shutdown, but I would say it's about 50, 50. So knowing that you really have to make a very wise trading choices going into really between now and towards the end of the year. So I'd say between now and the end of December, there's a 50, 50 chance we could have another shutdown. So what does that mean? It means if you're in overnight positions that are short term, short term options, for example, or swing trades and you're up, you must remember to take profits. Okay. Don't look for piggy targets and things right now. And again, even though the market's pushing back today and even though it's rallying today, um, we have a lot of earnings out in the next couple of days that could create some more volatility in the market, specifically tonight, which I'll be watching. I'm only talking here for an hour, but after four o'clock this evening, I will be watching Netflix. Netflix reports tonight after the bell and that will definitely, definitely move the market. Now, I don't know if Netflix moves up or moves down and I don't have a position in Netflix. I don't usually take positions into the earnings, but I will be watching Netflix because it's going to be gapping and what I do is gaps. And I'm going to talk about that today in between discussing what my favorite indicator is. So what is my favorite indicator? My favorite indicator is price. You may not think that price is an indicator, but guess what? It is. And in my opinion is the only indicator, quite frankly, that matters. If it was as easy to take a moving average or Fibonacci or any one of a number of things that you can plop into a computer and put on your chart, no one would lose any money. If you could just say, well, we'll go long on every, you know, move and hold on to support, which is what people are telling you to do today in the market. If it was as easy to make money as that, everyone would do it. You could see what the 20-period moving average is and you would just go long and you would make money and you would never lose. It's not that simple. Sometimes you can go long on the 20-period moving average. Sometimes you can't. Okay. Successfully or shorter vice versa. Okay. So what I'm always looking for is price and actually sometimes I haven't been in studio at Fox since before COVID. It's been 2019 was the last time I was there. But when I used to have to go over, I used to not have my charts in front of me, be on my phone and I'd be reading the price. I'd be reading the tape on my phone if I was in positions or if I had to talk with the market or if I wanted to see where it was at and, you know, back, back in the day, long, long, long time ago when people first started trading, they didn't have all of these electronic charts. People really had to read the tape, which is again just reading price action. Okay. So price is an indicator and it's something that is, that is very significant and it's something that I think people just like kind of forget because you're so used to looking at so many things on their charts that they don't focus on the only thing that really counts or matters is price. If something's moving up and you're short, you could be down. If something's moving down and you're long, you could be down. Okay. So where something's going to go counts, which I mean where the price is going to go because that's how you're going to make money in a position. You're in a position and it rallies and you're long, you can make money. Again, in the opposite, if it's falling and you're long, you could be losing money. So what really counts is price. And let's just take a look here at yesterday and I'll just show you what I mean. So for the purposes of this lecture here today for the next hour, I'm just going to show you. This is a chart of the market. I don't have this. I took this off of yesterday. You can see here, I have nothing on it. So I have volume down at the bottom, just if you want to look at that, but these are all candlesticks. So candlesticks depict price. That's what candlesticks do in a chart. So I took all the moving averages I have off of my chart and just to show you here, price. So I could train looking at this or reading the numbers. I think very few people could do that. So I want to show you here what happened yesterday. Okay. So here was the market Friday. Actually, let's go back to Thursday. This is Thursday of last week. No, let's go back to Wednesday here. I'm going to show you. Market retested the highs last week and the spike fell held very strong bullish market. I'm only showing you back here the last couple of months, but you know the market's been strong. You can pull up your chart and look at it. So you can see it here. So we made new highs. Then we gapped down on this was Thursday. I forget the reason we got down. I think it was negative data, whatever economic news, but we didn't really go anywhere.  Then we gapped up. This is Friday. Couldn't hold the gap up fell. Sold off into the close on Friday into the weekend. I'll be closed here. Now I do gaps. What is a gap? The gap is a difference between the close and the open. How do I know that? I'm looking at the price. The price of the close here was four o'clock. The market always closes at four o'clock. Whatever this number was here was around 431 or something and change. I think we opened the following morning, which was yesterday down. So from the four o'clock price of the close, the price was down in the morning, whatever it was at open lower. So this was around, I don't know. I think we open around 425 ish or something like that. This is too small for me to read it, but we gap down and I looked at the price four o'clock price 930 a.m. Where we open. I have no moving averages here or anything at all. So what counts the price? Price is an indicator and use the candlesticks to show me the price to make it easier to read, but I could do it reading the tape and you could also make line charts or lines to show if you want if you don't like the filled in candlesticks. Now I like the filled in candlesticks because I when I started training back in 2008, I started using candlesticks that were filled. So I got into habit of that of the reds and the greens. The reds are the bearish bars. The greens are the bullish bars. I think it's easier to see really quickly with my eyes because of the colorations, but you can actually make them lines if you want. It's a different way to formulate it or put it in your chart if you want to do that. But the focus for me is price, which is my favorite indicator and what we're going to talk about here today. So when you look at this, when I would look at this yesterday and I'm going to show you the pre market here in a minute, I could tell the market was going to fall yesterday. So we shortened the market yesterday. That was the play.  OK, they we sold off. So we continued selling off. Now here is what I would normally have up if you go to my YouTube and watch any of my videos. These are this is the daily with the moving averages. Again, some some people like moving averages as their favorite indicators mean no, although I have them on here, but I want to show you how this and this you should be able to see what this is here. And this really helps you even focus more. Do you see because you're more honed in really on the price here and not leaning so much in these moving averages? Now, I don't have today's chart in here, but I can I know what's happening here today or I did like before I popped on. We're pushing back. We're rallying. Why? Because people are buying the market into support here. That's what's happening today. OK, any questions you can plop it in the room. Now, I wanted to show you this. This is a one minute chart going back from yesterday. Yesterday was 719. Again, I squished these and made it really, really small so you could see the gap. This is Friday night. Boom, boom, boom, where we closed after hours. Take it up here. Here's four o'clock. This is the after hours of the market Friday. Not much was going on here. This is where we sold off. Then we closed at the lows. Then boom, this is the morning on Monday. Again, what's my favorite indicator and the best indicator in all that you need is price. You can see how the price dropped because this is up here from the day before, which was Friday. Boom, here you are Monday morning. This is all pre-market and then open boom dropped. And again, we shorted this. It was very easy for me to see that we would fall on yesterday. OK. Any questions here so far? So again, you know, I had this chart in the PowerPoint, but if you be looking on the on your charts and clicking on it, you'd be looking at the price of each candlestick, the highs and the lows and where we are. But just to show from Friday to Monday, you can see where we where we went. OK. So I think sometimes people get really caught up and I've seen people's charts that are almost like I would get a headache if I had to look at them all day to trade where their charts look like a planetary solar system. I try to keep my charts as clean as possible so that I can just see the price so that, in fact, I can see the gap. OK, because that's how I'm making my trading choices and decisions and based on the price itself to be able to read it so that I can see what's going on. OK. If someone told you and I'm just making this up, I'm not making a prediction. I'm not saying Netflix does anything like this at all. I don't know what Netflix earnings are going to do. And like I said, I'm not in Netflix into the earnings because I don't know what it's going to do. But if someone told you that Netflix was going to out to tonight, was going to drop down to 500, what would you do? If you knew the price of the stock was going to go to 500 tonight and close at 500 and open tomorrow morning at 500 in the pre-market tomorrow. What would you do here today? Now, I don't know where it's trading right now. Could be in the high teens, could be in the low 20s. It's it's not at 500. But if someone told you that was going to happen, guess what you do? You short the price like say around 520 ish today if you could get it there. And tomorrow morning, you would be up what? You would be up $20 if it opened at 500. So you see the significance of knowing knowing where the price is going to go ahead of time and being able to predict it. So I don't predict the gap itself. Otherwise, I'd be in Netflix. If I knew where the gap in Netflix is going to be, I'd be in it today whether long or short. But I can predict once I see the gap where it's going to go, which is why I'm showing you this here, which is the market from yesterday. This was like eight o'clock in the morning. So I was able to see eight o'clock in the morning that the price was going to go down, down and that's what it did. Okay, so I wait for the gap and see it. We did several puts yesterday. In fact, I sometimes, not always and not every week, I sometimes do like a lot of trades in one day if I see the market direction going in one way.   Yesterday was a day that I called a lot of trades. They were all puts because I called them with the market directional bias. I do not do that every week, but I sometimes do. Now, when I do something like that, it's your decision if you wanna do one or two and you can't say, if I don't do all 10, then what if I don't do the ones that lose or whatever? No, if I'm calling everything together with the market, they're either all gonna work or they're all not gonna work. You know what I'm saying? Anyways, I called the 425 puts in the spot which you could have done yesterday and got right out of. Now, you still could be in those. Okay, you still could be in those. You could still be in some of the puts that I called. Now, while we were rallying back today, by no means do I think in any planet that the market makes new highs this week. I just don't see that's happening. People are buying today into support. There are people that love to buy dips. That is not what I do. And people do that based on what? They buy moving averages or different indicators which are not things I used to trade. Based on the trading action that we had yesterday, no one should be buying this market today, in my opinion. Forget about the COVID fears or any of that nonsense. The market isn't gonna make a new high this week. The only way that would happen is if Netflix blew out the earnings. And I mean blew it out of the water and rallied up and gapped up 80 points tonight and then the squeeze would make new highs. But I don't necessarily think that's gonna happen. And even if that happens, I don't think the spy's going to lie because the banks are weak. Even today, the banks are weak. They're pushing back, but the banks are super, super, super weak, okay? But anyways, that's a trade that worked yesterday that you take it, get in and get out. You get in, get out. You get in and you get out. And I said the trades yesterday morning before the open. So you can't take options trades. Well, you can take the market trades, 10 minutes before the open and get out 10 minutes after the open. I don't suggest that, but you could, but you can't do that with regular stock options. But I usually try to get the trades out by 9 a.m. Eastern time so that people can get organized from what they wanna do on the day. So yesterday was a busy day. Today I did not call any options trades. And actually we didn't do any day trades today. Why? Market was up. I don't wanna go long here. I don't like this long setup in anything at all. And there weren't any good earnings. So we didn't do anything good at it. Strange on a week that there's earnings, but we didn't. Now this has been a really nice, nice short for us here, Boeing. I forgot when I started getting in this. We've done a bunch of trades in this. They've all worked. So I wanted to show you Boeing here. No moving averages, nothing at all, except for what? The candlesticks. So this was a trade I called, actually I called the 230s. I called the 230s. I think it was here. And I got out of it because it fell. But if you were in the two of 30s that expired the 2030s, you still could have been in that trade. I don't even know what it, I don't go back after I get out of something and see what I could have made. I never do that to myself. But you could have still been in the 230s. I called the 230s here. This went down to like 205 yesterday. They expire Friday. Somebody might be in them still. I don't know. But that was a nice call. I called the 220s last week too. I forget what day I think it was here. And that fell into itself then and dropped into itself on Monday. That was a put. Excuse me. It's too late to do that now. No one should be doing those. Those are too far into the monies. But anyways, when you're looking at it, just talking about indicators again, price is an indicator. The indicator of the price of this chart was telling me that Boeing was lower. How did I know? I could tell from the gap here, which is where we entered and got in. So again, stock closed here, gap down. Boom. I think we day traded this here too. I don't even remember if we day traded, but I know we did puts in this here. And I read the price of the gap and I said, wait a minute, wait a minute. This is gonna sell off because that's what the red bar should pick, selling. And you have the shorts. I prefer to short. It doesn't mean I don't go long, but I do prefer to short for my day trades. I will do both calls and puts for options trades, but I prefer to day trade short. Why? You get fast moves shorting on day trades. And the quicker you can get in and out in day trades, the better because you only have to four o'clock to make money. You only have six and a half hours to make money in a day trade. And also you have economic news. You have all kinds of things going on in the world. You don't wanna be in day trades too long. So I focus on trading between 9.30 and 10 AM Eastern time. If I can get out of everything in the morning, the first hour of the day, I'm good. That's what I prefer to do, okay? But anyways, we also did this then yesterday, which of course worked. It was a gap down. Showed this closed here, open here, fell. So again, this closed the Friday. Okay, this was Friday. I don't remember the price of this, whatever it was above 2.15. Then this gap down here Monday morning with the market and everything else, and really tanked. Okay, really tanked in here was a nice trade. So again, this is where I'm reading the price. I'm reading the price of the gap. I'm reading the price overall. This is the daily. Without any moving averages or Fibonacci or anything else on here, I can tell that Boeing is going to continue lower, that the price is going to drop, and therefore we did trades. Again, you can do day trade shorts in this. You can do puts in this or swing trades, or you could've. Again, I don't know where this is at today. I know this is pushing back today too. But anyways, the trades dropped into yesterday's momentum. So again, if you know somebody's gonna go in a certain direction, whether up or down, and you can read the price accurately, you can take the trade. Again, I'm not predicting the gap. The gap was here. I saw it. I traded it. The fact that it followed through and continued lower into another gap down was just icing on the cake. But you might've got out of some of the trades ahead of time because this was a nice move here and a nice drop off even before yesterday's sell-off into Monday, okay? Now here's the daily with the moving averages. So again, this is the same thing, no moving averages as this.  No, you gotta see it all the time. And that's why I think a lot of people use too many computerized indicators. Do not focus enough on price action to make trading decisions. And that's why I'm pointing out, like if I read something, if I'm sitting on my phone and I see over here, in fact, I'll look at my phone right now. Let's look at Netflix right now on my phone. I think Netflix is down on the day, but let's check it out here. Just trying to find one thing that's negative. Yes, it is. So Netflix is pushing back, looks like set the low of the day around, I said 520, low of the day today was 520, 30. We opened at 526, 07. So let's see where we are right now. We're at 528, 92. I can tell you right now, what does that mean? If I pulled up my chart and looked at the candle stick, Netflix would have a green little body bar. I don't know where that closes, but I can tell that Netflix now is green on the day. Was red before I got on, now is green. I just looked at my phone, just looking at my Apple phone, okay? So you see how you can really tell what's happening when you're focusing on price more to make decisions and then you don't get so distracted about all these other things that really again can make you second guess yourself, not wanna do a trade or consequently want to do a trade that you may or shouldn't really do. You know what I mean? Like where you really shouldn't be doing a trade, like going along the market today, I think is a bad treat. Anyways, here's the one minute. This is Boeing from yesterday. Again, Friday night, going back, sold off, closed week. Boom, boom, boom. Again, then we get up Monday morning. Here we are, boom. So again, look at the price. Take it to the right. We're closed up here, roughly around 2.17-ish. Open in the morning here, around 2.13-ish. This is the pre-market. We just kept falling and falling and falling and falling and falling and eventually then at 9.30, this ended up opening around 2.11. This was yesterday, Monday morning and then we went poof and we sold off. This was a nice sell-off here on Monday morning in Boeing. Again, you still could have been in the 2.30 puts or the 2.20 puts on Monday morning in the pre-market. I called the 2.10 puts in Boeing and they worked. They'd have just gotten out. Remember, trading, what do you do? Options trading, what do you do? Day trading, I do short-term options, weeklies or the following week, depending on the timing. You're just in your out. You're in your out. I'm trading momentum. So I'm looking at the price. I'm predicting the momentum based on the gap, reading the price, and then I'm taking the trade and then I get the momentum and then I get out. And that's what it is. That's really what I do and really what trading in my mind should be. This holding on holding and holding forever kind of nonsense really gets you in trouble. Also, your money isn't working for you. Your money's like stagnant when you're not doing anything with it. There are people, and I wanna get off on a tangent here, but there are people that are in love with these chat rooms right now, these Reddit chat rooms. I'm sure some people here today are in those chat rooms. These free Reddit chat rooms, everyone's in. People are doing the AMC, the GME and whatever. Those stocks are dead, dead to me. I'll never trade them again. They're ruined, the charts are a mess. And people are, the charts have flatlined. Again, if we have time, I'll pull it out. Like the charts have just flatlined in between. Like it'll have a big move up or down and then it flatlines. Like people aren't actively trading them. The stock isn't acting normal anymore. So people are wasting their money like in some of those positions, waiting for them to go which could happen in weeks and weeks or months or years from now. Like it's just like people aren't actively taking their money, using it, making money, taking their money, using it, making mother money. Like when you're in a position, and again, in a day trade, you gotta get out before four. And if you're day trading, I'm sure you're trading on margin, everyone trades on margin, even big traders. If you're doing an option, you're not using margin, it's just the cost of it. But that money is being used up in the position. If the position cost you $5,000 to take it, it's sucking up that 5,000 until you're exiting the position. You don't wanna kill it with a loss. You wanna give the trade a chance to work but you cannot use that $5,000 if that's what you took of that number of the position in it. Say you took a put in Boeing. If you can make money, get out because then you have the profit of the trade and then you have back the 5,000 to use again and again and again to be active. The purpose of trading is to make money. I call it chunking it out but you have to take trades over and over and over again. Any questions here so far? So how can I tell anything from just price action? Easy, I'm reading the gap. I'm reading the price and I'm predicting based on the gap, the next direction the price is going to go because price is all that matters. That's how you're gonna make money. You will not make money in something if it doesn't go in your direction. If the price does not go in your direction, you're going to lose. You also have to have a time amount that you needed to go in that direction. In other words, if you take a day in trade, say for example, if you shorted Boeing yesterday, Boeing has to go where you can make money in it from where you entered to where you could get out before four o'clock as a day trade, otherwise you're gonna lose. And same thing with an option. If you're in an option that expires on Friday, you have to get out of it with profit before Friday. It's got to go in your direction. The price is going to your direction. If you did it before Friday and preferably before Friday, I don't really want to hold a trade until the very last day if I can help it. We just don't trade anything. I don't trade anything without volume. So I don't really look at that as anything at all. I don't do low flow stocks or penny stocks or any of that stuff. I think they're junk. Everything we do is a thing that you would know. You're like, oh, I've heard of Facebook before. You've heard of Boeing, you know. So you must have a strategy to make money that focuses on what makes you money, okay? And for me, again, that's gaps. You can make money in the market. People do it all the time. However, not everyone does. Why? They're distracted. They're not focused. They're not focused on the right things. And they're all over the place about what they're doing. Today's a good example. Again, people are going long the market. It's a bad trade. Whether you could be up if you went long the market into the open today, but that doesn't mean it's not. It's a good trade. It's a bad trade. And I wouldn't be surprised if people hold this long here and in it tonight overnight and hold it into tomorrow. Think we're gonna continue and then get burned. And again, I don't know where Netflix ends up being tonight, but that would not be a smart thing to do with Netflix earnings tonight, not knowing the outcome of that earnings and how it could affect the market. I'm doing the weeklies. Someone's asking me about expirations. I don't think it benefits to take things out for months and months and months. You don't make enough money. If it doesn't go, if I don't get the momentum going in my direction in the first week, then it's very hard to predict where, how long it's gonna take to get there. And then it doesn't make sense to pay up for it. You're paying up the longer you take it out. It could go in my direction. I've done trades like that where I, like I did, I did something to Netflix.  I don't remember if it was June or July now. I don't remember, but I did a trade in Netflix. I ended up getting out of a break even. I paid too much for it. I took it one week out for the following week and I wished I hadn't done it. Should have waited until the Monday because it went in my direction. I got the direction right and I didn't make any money in it because of what I paid for it for the following week. So, I mean, that is one of those little nuances. I'm good at it. I'm good at it, but sometimes I, my time is just, because you don't want to take something where you risk $5 if it costs $5 from one contract and make a buck. I'm trying to risk $5 and make $250 or $5 and make $5. I don't want to risk $5 and make $5.25 where I'm only making 25 cents. The timing of options is so, it's just one of those things like, I can't even think about it. It's like baking a pie. I had family come visit me last week. I made a pecan pie, which I love. I love. You know, the directions say 45 minutes. Every oven is different. If you've ever baked, you know that. So, I said, I'm not putting in for, I'm not putting the timer for 45 minutes. I'm gonna put it in for 35 minutes and I checked it and I said, oh, this isn't totally done. So then I put it in for five more minutes and it was almost, it was right there. Like if I'd put it in for 45 minutes in my oven, those pecans would have been burnt. The pie would have burnt. So it's like, it's like baking a pie. It's or baking fish if you've ever cooked fish. Like I, I'm very good at cooking fish. Like I don't overcook it. Sometimes you go to a restaurant, the fish is overcooked. I always ask for it to be undercooked because it cooks even now once you take it off the stove. So it's like, it's like, that's like how options are. It's just a little thing. Like you bake that pie for five more minutes, it's burnt and nobody wants to eat a burnt pie. So it's just very, there's little nuances and that's really what I, what I work on, you know, that honing it down as often as I can in my trades. Because sometimes I get the direction right and then I still don't make enough money or feel like I don't make enough money. In order to become successful, you have to be serious. That means learning from someone and taking direction. And that would be me. Learning from someone may cost you money up front. You would have to pay me for my classes and services. They are not free and they are not cheap. But it saves you money in the end. You learn how to focus and then trade smart. And obviously then you get the benefit of hearing, you know, what I think about the market and stocks in general. Success or failure is everything to do with the quality of your system. And I think one of the biggest mistakes that traders make is they don't have a system at all. If you're not following a system consistently Monday through Friday and you're all over the place, well, that's a problem. How are you gonna ever see success? How are we gonna get good at anything? How are you ever gonna get those nuances? Again, like baking a pie, how are we ever gonna know? You say, well, I think my oven's a little hot. I've baked in this oven before. I'm gonna put it off a little bit and check it, check it, check it. And you have to get good at something to do that. It's unknowing. It's not just a learning. Anyone can learn. It's a knowing. It's a difference between knowing. We did something. Crap, what do we do the other week? I don't even remember. There's just so many trades in the last couple of days. There was something that we did. I have to look it up. There's something we did. I said in the room, this is 1,000% conviction. I knew it would fall. I knew it would fall. It was a short. I said, it's 1,000% conviction that's gonna work. Like I knew no matter what, no matter how much you rallied back, no matter where it set up, no matter where the price went, I knew it was gonna go. I knew it was gonna drop and it did. I forget what it was. I have to think about it. But like, there's a difference between learning and knowing. And knowing takes experience. First you learn, then you do, then you get the knowing and that comes from experience. And what people do is they never get to that higher level of knowing, just knowing, that's where the confidence is. That's where you take the risk. That's where you hold. That's where you know what to do. That's where you can take 10, 15 trades in a day, you know, like we did yesterday, knowing, you know, because you have the confidence and the conviction to do it. And that takes time and experience and people are over too many things all around and they never stick on the same thing and they never get good at it. All I do is got, so that's all that I've done since I started trading in 2008. But it did take me three years to develop my system. So how can you become successful in trading and focus on one thing and do not do what everyone else is doing out there? Because most people are losing and that's just a fact. Sometimes people are losing from poor money management and many times people are losing because they're all over the place and what they're doing. And if they're going into the chat rooms, you're with a bunch of strangers, I wouldn't take advice from strangers and chat rooms on trades to risk my own hard-earned money ever. One, I know what I'm doing and two, I don't know any of those people. So it's kind of silly to me that people are doing that. While it has worked in some of the trades that people have called in those rooms, the rest of them haven't and people lose more. And think about what I said if you're in those rooms and you have money in those stocks, they sideline dead until they go and you're wasting your money. You could have turned your money over 55 times in the time you're waiting for some of those trades to go that may or may never go in your direction. You understand what I'm saying? So every day you need to be working your money and making your money work for you. It's like, if you put money in a savings account right now, what are you earning? 0.0000001%. Your money is not working for you now. While it's so interesting, rates were at a okay rate back like 2019. You've seen rates were dropping, rates were dropping. Well, that's not good for savings. That's not good for savings. The only way you can take the money that you have and make it anywhere is really actively trading or investing because the bank isn't gonna pay you. Bank isn't gonna pay you if you stick money in the bank at all. In fact, high yield savings accounts are ridiculous. If you wanna put your money in a CD, it's like, I think I looked the other day of like a five year is like 1% or something. Are you kidding me? Like that's so silly. Like I can earn 1% of my money in like 33 seconds in the market.  And plus we can do it on margin. So you need to grab hold of what works and learn from a trader who has a special talent for reading the market. I'm not the only speaker here today, but I know that I have a talent for reading the market and that's something unique. I may not get it right all the time, but I get it right a lot. And it's interesting when I listen back to that Fox News clip, I did preempt some kind of scare of this COVID. And again, I'm not saying we definitely closed down, but I would say don't be surprised if we do. And if you know that there's a chance, even if it's 2050 that we could prepare for your positions for your long-term investments, knowing that that could happen. Do the things you need to do today to prepare for that. So it doesn't shake you. We were talking about that in the trading room today, like where could we go? Where could we go? I don't think I would have time to talk about that here today, but where could we go if we did have another shutdown? Like where would we go? We were talking about that in the trading room this morning and what would occur in the economy? It would be devastating for the economy. I live in Manhattan. It would be just, if we shut down and get in New York, it would squash New York like a buck. We never reopen fully. 50% of the restaurants are open. All of the beauty salons are only 50% capacity. Broadway has not fully reopened the four seasons so it tells them reopen. They would most likely do a third round of the PPP money. They would extend unemployment. They would extend the evictions. They would do all sorts of things, but in the end, having the economy shut down again or some kind of federal mandate would create a negative reaction in the market. There's no way it wouldn't. And knowing that and knowing how gaps work, which happened, they happen overnight. Like from Friday to Monday, you didn't know that was gonna happen and then it did. And if you were long things Monday, you got up, you were down. So it's kind of like, you need to know that that could happen. You need to know that that could happen and you say, well, what do I need to do? And again, the nice thing about actively trading is you're in and you're out. You're in and you're out. You're in and you're out. And that's where you keep the money working for you. Do you know what I'm saying? And even if you end up being caught in something like that, you can flip it. You can flip it around. Again, we shorted yesterday, but we weren't any longs going into Monday. Well, New York is a whole other thing. New York is a mess, to be honest with you. I'm still here, but it's not back to normal. And what people say on TV, it is, they don't live in New York. Anyways, my strategy is based on reading institutional money. It moves stocks and it moves gaps. And I use a 26 point reading system. If you would come to me and you wanna learn my system, this is what you'd learn. It's in a class, the class is this weekend. It's a two day full course at 16 hours and a one hour break for lunch on Saturday and Sunday. It's online, you could be anywhere in the world and take it and this is how I make the predictions. I don't predict the gap. I predict where it's gonna go in the price action after I see the gap. I'm reading the institutional money, just like yesterday, to see that the selling would commit. That's what made the gap yesterday. It's called the professional gap. The professional gaps that happen to play on a stocks are formed by one thing and one thing only, large institutional money. Therefore, you need a way that will help you pick the correct direction to play the gap and confirm that the large money will flow with it. That's what you wanna do. Now again, basics, what is a gap? A gap is a difference between the close and the open. There are gap ups and there are gap downs. Let's look at a gap down. This is Amazon, closed here, open here. Show it closed at one price, open at another price. Again, follow the price as the indicator. Over here, it was a gap up. Closed here, bullish gap up. Rally could've gone long here. This was a nice move, even for Amazon. It was a big move, actually. It was like 150 points. Took it up, made new highs. So this is one where the price is moving higher, okay? But a gap is a difference between the close and open. It could be a small gap or it could be a bigger gap. Okay, there are different sized gaps. Here again was a diamonds, okay? This is very obvious once again. Closed here on Friday at four, open down. Down here on Monday morning. Okay, fell. I took this in the middle of the day yesterday. So anyways, I'm following the institutional money. Gaps are an event. They create a sense of urgency. The urgency could be selling or buying. But an action is being forced by participants at the stock. We're gonna see that tonight in Netflix, you will. Again, wherever it goes. That's why the gap trading is incredibly powerful. You get the momentum and that's how you're able to make money. You're playing the price momentum, momentum when you're in the shop. And again, I made my system golden gas because it's like finding gold in the market when you see it. We get gaps most days. Today, there wasn't anything I liked. There were gaps, but they weren't good.  Again, we didn't go along the gap up in the market today. We do trade most days. Today was unusual, like I said. But a lot of things were up because the market was up. Many things got with the market. I didn't like it. Now again, the market rallied today, but it doesn't mean it was good. Part of having a system and part of knowing what to do is sometimes you will not trade. It's not that often. Maybe three days a month we don't trade. But not trading is better than losing. And we did so many options yesterday.  We did a lot of trades yesterday. I mean, we really don't have to trade the rest of the week, right? Frankly, I will. I will, but I'm just saying like, sometimes we do a lot of trades in one debt. You know what I'm saying? Anyways, I'm gonna go over the last week of day trades. I don't have today and we didn't do anything, but I had in yesterday, I stuck in. These are only day trades, okay? Again, all of my focus and everything I'm doing in all of these charts is praise. So we did Boeing. Oh, I know. I just remembered it was BAC. That was the one where I said I had 1000% conviction. Oh, I have that in here. That was the one I was talking about. I'll show you in a minute. Anyways, we did Boeing, which was the Tuesday? 7.13 was Tuesday. Yeah. Here, we talked about this day. Closed here, gap down, fell, boom. Shorted it. So the entry was 2.3305. Again, if you don't want to do a day trade equity trade in this, you could have done the put. Advanced trader risk, 1,300 shares. Risk was 27.95. Exit 2.3.85. This continued, but again, a quick morning trade profit 2,860. This is a day trade, an equity trade on margin. This is not an option. But if you don't like the price in here and you want to do an option, you could have done that too. How many stocks options do I have to follow? I don't know what you mean. I look at anything that's gapping and I decide I want to do an option and I do it. Sometimes I'll do an option at a day trade and the same thing, sometimes I won't. I'm not day trading Amazon. I'm not doing equity trades in that. That's something that I would only do an option in based on the price. It's price spreading, all of the above. And then there were some things that I won't do options in because I don't think they have enough volume and they don't move enough. This was the one. This was the one I said I had 1,000% conviction. It was BAC. And this rallied first. That's why I said it. So it pushed back. I said, I know it's gonna go. I know it's gonna go. We did an option in this and we did a day trade. Well, this was the 14th. Close to your gap down, rallied, boom, fell. So it was a gap down. So we did this and again I had an early exit in this. I'll go back and show you where it went. In, out, money, done, early, boom. Entry 39, 20, 9,000 shares, $2,700 risk. It's an advanced trader risk. You had to risk half that and made 2,000. 38, 75 was the exit, 4,050.  If you wanna hold it, you can. Somebody emailed me last night, a guy, he said I kept, I stayed in the diamonds. We did the diamonds yesterday. I said, that's fine. That's fine. If you decide to stay in it after I get out of it, that's fine, but you still need to know where you're gonna get out of it. That paid him yesterday and if you stayed in, this just continued to. I forget if this got to 3750 at tribe, but it definitely got to 38 and I got out of it way before that. That was a trade that I was talking about 1,000% conviction. I loved it. This got down two. This got down yesterday two. No trades in the 15th, I think that was Thursday. 716, we did the Q's and then we lost. This was a stop. So we had one stop last week. We went long. This failed. This was Friday morning. 362.20. Again, you could do an option in this if you want, but I ended up taking a stop in this. Risk was 2250. Exited where I had to stop, 361.30. This fell, gapped up, fell in the day, lost. Here's what happened. This was the rent day, which was the Friday. We closed here, gapped up. We were green a little bit. Not enough to get out, broke. And I do use stops. And luckily I did because this kept going. Look where it went. So you have to have a stop in, which I did.  Then we did another trade that worked, which was Netflix on Friday. So I lost in the first trade Friday. Then we did Netflix, which was a short. Closed here, gapped down, fell. I got out of this again in the morning too, but this kept going. This fell into the close as well. This was an entry of 539.10. Big stop, but still pay. This stock moves a lot. 800 shares, risk was 2560. 534.90 in my mind. It was like 535.535. 535 will get me positive on the day, which it did and I got out. Show profit was 33.60 from the stop and the queues. If you held this, this did go all the way down to the target and fell. 530 was the number it got there. In fact, I didn't get broke it. So again, you could have held this one too, but we got out roughly around here. It was a quick trade. It was an easy trade. And after the stop and the queues, it was Friday and wanted to be done. But again, this is out tonight. So we'll see where this goes tonight. That was a day trade. And then we did the diamonds yesterday. Nice, nice sell off. Beautiful entry. 341.60, 2,500 shares, risk was 3,000. Exit was 339.45. I don't know the low of yesterday. I don't know if it broke 337. It got close if it didn't. This was a nice trade, but it was a lot of money. So again, your goal is not to have a piggy target and everything, but 5,375 was the profit in this. It was a really nice entry. So we did this, got out quick and it kept going. Now I guess it didn't get to 337. I thought it did. Anyways, I like to get out in the morning. So we did. But one guy in the room, he didn't email me. He stayed in it. So advanced trader risk, roughly between 2,500, 3,000, you do the best you can to try to size yourself within the limits that you can, similar in each trade. But when I'm trying to take things really fast, sometimes it's close. What I know what you to do is if you're trying to risk 2,500 and then you're under risking 5,000, you can't do that. Anyways, total last week results was 13,395. Again, one loser, one day of no trades. You can see here that I prefer to do one trade a day most days and that's what I do. But we stopped in the queues on Friday, did the Netflix. So this is day trading trades, equity trades. I do have one option I think in here just to show you that you can use my system with options, but we don't do options every day. But I'll do options. I might do several options in one day, like I said. So on average, I might do five options trades on average, maybe a week. Sometimes more if it's a busy earnings season, but they're not necessarily spread out Monday, Tuesday, Wednesday, Thursday, Friday because that's just not how trading is. I can't just say, oh, I want something good today. I'm gonna make it up. If it's not there, it's not there. My focus, which is the topic of the lecture today, is price. And that for me is where the money really comes. Also, I am extremely motivated to make money, which is one of the other benefits of trading with me. I want to make money. And so I really am very focused for that purpose to make money for myself and it's advantageous for my clients and people that are with me. I've been doing this a long time. I do nothing but gaps. I speak on national television and that has heightened my ability to be able to focus even more because I'm aware of the fact that things that I say will be on Fox News' website forever. So if I say something about COVID or the market and it turns out to be wrong, someone can go back and listen to it. So I've really, really, really gotten better at reading the market since I've been on TV for the last four years. And that has helped my trading and consequently has benefited the people that are there that are trading with me every single day. But as far as what you're doing and what you're doing today, what you're doing the rest of the week, think about what I said today. You've got to find good trades. You need a quality system and you have to make good choices. And I think sometimes people have too many indicators on their charts to distract them for what is really happening, which is the price, because that's the only really way you're gonna make money. And I understand that sometimes many people are doing the same thing, but you've got to kind of just take a step back from that and say, is this really what I want to be doing and does this work all the time? Sometimes things can work one day, but over the rest of the year they don't, but that's not gonna make you money. You have to have something to do that works consistently that wins more than it loses, okay? So how do you make money in the market? You trade a strategy and system that's profitable. What stocks should you trade? For me, it stocks the gap and rate per my 26-point rating system. When do I trade them? Early in the morning in the open when they set up and trigger. If I don't get anything, if it doesn't set up, if it doesn't trigger, then I don't do it. What am I looking for? Average, flip around and return an investment one to one. If I'm in an option, it's up 50% or more I might get out, especially if it's close to the expiration date.  It was profit, it was money. I took it, I got out of those 230s. So you need to make a decision and say, if you can't watch your trade, if you're in an option, put a sell order in. After you take it, if you pay one, put a sell order at 150. It's a day order, it's a cancel order. If you have to do other stuff, if it fails you, it fails you. If it doesn't, it doesn't. What I'm in the day trades, I'm looking for usually one-to-one, flip around. So if I'm risking 2,500, I'm looking to try to make 2,500. This is not an exact science, okay? You do the best you can. The goal is to make money. What helps with successful profits? Money management, again, if you have a small account, you should be booking profits all the time because you can't take any new trades. If you're used up the money of the trades that you're taking that you already have on, waiting for them to go to some bigger number. If you risk 500 and you're up 350, get out. Then you have the 500 back in your account and the 350 booked. That's how you take a small account and grow it. There's a gentleman I have his testimonial here at the end, but he sent me another nice note yesterday. Garvin, he started on the options newsletter on Memorial Day, Memorial Day weekend. So he's been on a little bit more than a month. He started out with a very small account. I think he had $2,000. He's got 20 grand in there now. He's really like the poster boy of someone. One, he takes my trades. I'm calling a lot of great trades.  I mean, I can't tell. He probably emails me every day. I got out too soon. He should be getting out. He had a small account, but now he's gotten to the point where he's almost got at 25,000. So he's really made a lot of progress in the last couple of weeks. And sometimes he even has made mistakes.  And I tell him not to do that, but he's learning as he goes, but he's had huge, huge progress just since Memorial Day being on the options newsletter. He has a regular job, so he can't day trade in the room. So the options newsletter is good if you've got a job and you can't trade in the room in the morning, but you've got to be in the live room to take day trades between 9.30 and 10. Anyways, don't be afraid to use stops. Talked about that. Again, price is my favorite indicator. We're talking about that. I use my own rating system. This is what I teach in the class, it's checklist. It looks for the price of the stock to read the direction correctly. That's what I'm focusing on. The points tell you where the money is flowing, where the institutional money is flowing. Again, it's price focused, price, price, price, price. That is an indicator. You may not have thought of that prior to today or listening to me, but it is. And it's the number one thing you should be following. And you could practice yourself looking on your phone and seeing if you can read where something's at. And if you don't know how to do that, that's problem number one. I mean, you really should know how to do that, quite frankly, but it takes practice. It takes learning, it's experience. Everyone needs to go easier on their self. Some people are faster learners than others, but it's about a reliability in my own system. And for me, it's sticking with one thing. And again, if I had one piece of advice to give everyone today is try to stick with one thing. It's the only way you're gonna get good at it.  And that is a problem for people. Price is the best, best, best indicator for me. That is how I'm predicting where it's gonna go the next time. Now, as far as what I do and everyone here that's here today, I would think has a trading educational business. I think it's important to get the proper education so you can do well. I think it's important to have a mentor. I do care about people and their success and I will help them. I can't read people's minds. If they have a question, they have to ask me. If you come to me, you have to ask me, but I do try to help people through phone calls, emails, or Skype sessions. Tonight, I'm doing an options lecture only for people in the newsletter and that are prior clients. We're gonna talk at four o'clock today. I try to do those types of little mini classes in between.   Sometimes that's what it is. That's part of the experience of going through this when you're on the roll.  It was painful emotionally. I'm financial for me to do it. Not knowing if you're gonna succeed or create your own system or you're gonna go through a series of classes and paying people to try to find the right person that you could go to in the right system. That's it. When people complain and say, oh, I spent $100,000 on classes and lost money in the market, I'm like, okay. And your point is, I mean, this is what it is. It's like, this is your choices. You wanna get good at doing this. You're not gonna have to become successful going into a Reddit chat room. That doesn't work. You've gotta learn what to do. So you're either gonna figure it out yourself or you're gonna pay someone else to do it. And I can tell you right now, even if you paid for a series of classes, the toughness, the easier route, I should say, is paying someone else. It was very difficult. The process I went through in my life, it was from 2008 to about 2012. I would never wanna repeat that time in my life. I'm a very, very, very strong person. And I had money when I was trading, but I worked two jobs doing it and I would never wanna repeat that time in my life. And a lot of people told me to quit, actually.  So I was very blessed and lucky, but it was my own perseverance that continued me on to be able to figure out the things I know in the market and I'm glad that I did. Most people cannot do that, nor do they have the time. People have families, people have kids, they have financial responsibilities and they cannot make the time to do it. So you only got two choices if you wanna make it. So you just buck up and say, which one do I wanna do? You can't line like a baby about it. Everyone here is an adult. If you really wanna do this, you can be successful. I mean, I've proven that with the amount of people that are with me that are doing well and making money. While it doesn't mean that everyone that's come to me hasn't give up, some people do give up. Why? They make bad choices. I'm not pressing the buttons for you. I had somebody email me last night, I didn't get out of the trades. I said, you didn't get out of any trades yesterday? Mark was up this morning. I said, you didn't get out of anything. Anything at all. And he said, no. I said, why? I said, why? You didn't get out of anything. I mean, even if I called 10 trades, I thought it was gonna keep going. If I called 10 trades, I mean, even if you think they're gonna keep going, you should book the money in five. If I call five, book the money in two, you know?  I do the best I can to answer people's questions and help them. I mean, that's all I can do. Anyways, I'm gonna fast forward here a little bit. I'm just noticing we're running out of time. If you're interested in the class, you can email me. The class is this weekend. Let's see, what else? Oh, here's the option we did. But here was the 230s. This is so crazy. I called this on the 13th. I should have looked this up yesterday with this is worth. I thought this was a great trade. This was 157% return investment with an exit last week. But look where it went. Anyways, getting back to no piggy targets. That pretty much proves it. But great trade. If you took two contracts, you would have made 100% of you 7%, but you could have made a way more. Anyways, the plan of action is important. So the rating system will teach you to find stocks that have a high probability of directional bias for the entire day, big move of the day, early confirmation, whether doing the day trades or the options, and precise entries with follow-through and a good risk to reward. Here's Garvin. Here's Garvin. He wrote this nice little testimonial a couple of weeks ago, back in June. And then he wrote me another one yesterday. And he keeps in touch with me. He asked me what I think about stuff, but he does make his own decisions by getting out most of the time and he's done well. He's done well. So if you're interested, you can sign up. My class is called the Golden Gap System. It's a 26 point professional bearish gap system. Class this weekend is a bearish class. We're doing mostly shorts. It's a good time to learn how to short people. I mean, for many reasons. The purpose of this system is to help you evaluate which gap to trade each morning using a checklist. And a lot of day traders don't know how to short well. This checklist tells you what to trade, when and in what direction. And the 26 point checklist predicts directional bias in a stock based on the price of the gap. You do not need a general overall broad base for you to make money. Tons of people have that, I fail all the time. You do have to prep in the morning, you get ready, you rate the gaps in the morning, you don't have to read all the reports. I don't look at fundamentals. I'm just looking at the price patterns. I'm looking at the price patterns of the gap. Classes this weekend, if you want to do it, it's earnings season. It is a good time to trade because there's lots of opportunity. And the volatility in the market is adding to that. It's adding to that, where we are going to have more days like yesterday. Could be up, could be down, I don't know. But I'll know when I see it. July 24th and 25th is Saturday and Sunday. Classes online, cost of the class is $69.99, that's seven grand. You must email me if you want to sign up for the forms. Earnings using special and running is a trading room. And the option season is free through Labor Day. This is a nice deal. So the rest of earnings season, you'd be in the room, Monday through Friday, room opens at 8.30, and you get all the options trades, which is more than enough. If you ever do well and feel like you invested your time and money, again, if you listen to what I'm saying, I think most people do. But sometimes people make decisions like I had one guy who risked his whole account in one train. He luckily made it out okay. At $5,000 in his options account, he did an Amazon train that cost it almost that he should not have done that. No one should risk the whole account one trade. He was lucky. The trade worked. But not every trade that I call works. Not every trade that I call works. If I call 10 trades, figure two we're gonna lose and eight are gonna work. So you can't oversign yourself or risk your whole account because what if one of the ones you do that the two lose? Same thing what I talked about yesterday. You shouldn't risk your whole account and do every single trade yesterday and let alone not get out of any of them. You know, when they're running and they're up. We're trading momentum, that's what we're doing. If you'd like a trial for the rest of the week, it is a good week to trade with me. Email me at MelissaTheStockSwitch.com. Room opens at 8.30. I don't start talking usually till nine. I have a couple testimonials here. Any questions from anyone? I can try to bring up my charts but I don't think I have any more time. If you wanna try the room, pop in. I don't know where the market is right now. Again, I did not call the market long today. It would not be long this market here. Thank you, David. Any questions? Is Phillip here? Phillip was asking me questions about indicators. He was emailing me last week. Phillip, are you there? Pip Daddy. Pip Daddy. Some of the names that people come up with are funny names. Listen, be careful, people. Prepare for the worst. Hope that it doesn't happen with the shutdown. Okay, great. Have a good day, everyone.


What up guys? This Thursday, it's the day of anus surgery. It's about 5 p.m. and we're here with my second session of the holiday. It's been five days and this is only my second session. So if anything, it's given me a little bit of a break but today's back and unfortunately we've only got two machines so I'll show you those. We've got this, we'll call it a low pull, so it's unilateral and you've just got these and it actually feels pretty good to be honest. We've got that super set with lap pull downs or high pull and that feels really good too, unilateral and with these run along these wires so when you pull it down it basically gets in the perfect position for you.  But it's a big day today, big day and I'm nervous, I'll talk to you more about it later. Let's get into it. I was just thinking, I reckon there's something off and then I realised, I haven't even had any caffeine this morning. What am I doing? So guys like I was saying before, I haven't really talked about it, the reason we're actually here in Thailand or the reason I'm here is because I've come as support for my sister who is getting a boob drop today. So we've been here since Sunday and she's, but we've just been chilling out. Actually we've been here since Monday so Monday night, Tuesday night we spent at the other hotel, we've come over to this place. We spent one night here which we did last night, now we're going to the hospital this morning. We're actually checking out of this hotel and we're staying one night at the hospital.  And then we'll be coming back to this hotel for the last seven nights so that should be good. But yeah, gotta get these workouts in there. These hotel gyms just ain't cardin' it so I gotta find some real gyms with some weights. But until then, we go back to the room, have a shower, get our ship packed, have a coffee, fuck, that's right. And I'll see you guys when we get to the hospital. It's all new to me man, I don't know what to expect. All I've been told is that it's like a five-star hotel. So, let's see.   This is my school bus. It's just a school bus guys, come on. Here we are. Big day. Day is here. Hey, feeling that?  It's definitely not like Alice Springs Hospital. So we're at breakfast.  Haven't eaten since they work out. We're starting with one iced coffee. And what do you got? Ham and cheese sandwich. And I'm getting two chicken breasts and an omelet. And apparently in Thailand, I've got gardens and hospitals with fountains and everything. Phuket International Hospital Garden in Catheteria. Course one. Two whole legs, two egg whites, tomato and lettuce. See you at course number two. Anna, not sure if one or two hams and one or two sausages, one or two bacons. But um, plural of everything. French fried. Oh there. Right, next one please. So that was 80 baht. No, what was it? How much? 85. 85. Four dollars. Less than four bucks. Less than four dollars. You can't go wrong with that. Yes, we've got some gains. Fantastic. That is what I'm talking about. That's gains. It's actually probably the best meal I've had here. Fantastic. Recovery bed. Come on, hop into bed. Orange is the new black. Look, she's in prison.


Hey everyone, this is Dan. Applied materials has been doing pretty well in the past year. Will the price continue to go up? Let's look at the details. This is the daily chart for the last year. We can see applied materials, stock symbol AMAT, which is the candlestick chart here, went up by 139% during the last year. SPY, which represents the movement of the S&P 500 index, went up. By about 40%, and the same with QQQ, which represents the movement of the NASDAQ 100 index. Definitely, applied materials outperform the broad market by the wide margin. If you look at the six-month chart, same, applied materials is a lot better. It went up 68%, whereas the broad market went up by only about 15%. As of closing on June 29th, the price was at $141.92. My prediction is that applied materials will be at $162 a year or higher by the end of September 2021. In the next few minutes, I'll be talking about the industry overview. And we'll look at a competitive position of applied materials, compared to the other major players in that particular industry segment. We'll be looking at the most important news in the last couple of months that might have affected the stock price. And then we're going to the charts to do technical analysis. Then we will look at the analyst opinions and my own evaluation of the company. And then finally, I'll talk about my stock trading strategies for applied materials. Applied materials provides manufacturing equipment, services, and software to the semiconductor, display, and related industries. It has three major segments. Number one is the semiconductor systems. Number two, applied global services. And number three, display and adjacent markets. We'll talk more about these three segments later on. Who are their main competitors? Now, in the part that's related to semiconductor systems, where they produce deposition and edge equipment, they compete with land research and Tokyo Electron. And in the metrology and inspection equipment areas, they compete against ASML and KLA. The other thing that's very important as far as industry trend is that when the foundry, logic companies start moving away from the DUV, which is the acronym for Deep Ultraviolet Technology, and which requires this multiple patterning steps. And that's apparently where a lot of the applied materials, businesses are concentrated. And as the industry moved away from DUV and moving to EUV, which is the extreme ultraviolet technology, the deposition edge steps are minimized, thereby reducing the need for the tools from applied materials, KLA-C, and Tokyo Electron. This chart will tell you to what extent that shift has been changing. The top line here is applied materials. As you can see, they have since 2004 to today experienced a little bit of a decline as far as market share. And then if you look at ASML, which is a gray line here, because ASML, they pretty much have the monopoly on the EUV market, the lithography equipment. And since that segment of the market has been growing, their market share has been growing also. And then also LRCX, land research, they have been growing market share as well. It looks like to the expense of applied materials. And Tokyo Electron, TOE-LY, the light blue line here. And then KLA-C has been pretty much flat. These are the leading equipment and technology suppliers for the semiconductor industry. They supply the founders. But overall, applied material is still pretty strong. There are still the industry leaders you can see here. And good news is that in the last year, between 2019 and 2020, there's a nice uptake in the market share. And hopefully that positive trend will continue. If you like what you've seen so far, I'd like to encourage you to click the like, subscribe and notification button, because that'll encourage me to make more videos like this and it will help YouTube direct more viewers to my channel. Thank you very much. Let's continue. As far as recent events, as you probably know already, there's a very severe global chip shortage going on. And looks like this shortage is probably going to last at least until 2023. It pretty much touches on not just the automobile industry, but also of course the computer equipment businesses, as well as home appliances. And this article is talking about the shortage might last until 2023. Because of the shortage, Intel announced that they will invest $20 billion to build two new fat plants in Arizona. And then after that, Taiwan semiconductor said that they would invest $100 billion in the next three years to build foundries. And then after that, Samsung said they were going to invest $151 billion through 2030 to increase their capacities. So that's a lot of money being spent on building foundries. And when they build foundries, they will end up buying equipment from applied materials, ASML, and all these major leading companies in that segment. And I also have published videos covering ASML. You might want to check them out. But this particular video is specifically about applied materials, which I'm very bullish on as well. Also, EU has been talking about building up their own foundries to avoid any future shortages of semiconductor. And they currently represent 10% of the semiconductor market. That's why it is a very substantial piece of the market. But they haven't announced any firm investment numbers yet. With all the bullish signs about the semiconductor industry and about applied materials, I'd like to caution you that the picture is not going to be rosy forever. If you look back in history, this is applied materials net income. Currently, of course, they're riding high in the last couple of years. If you look back, it was DIP in 2013, they actually went into negative net income. And of course, 2009, when we had a worldwide recession, they also suffered losses for about three years. But just not particular to applied materials. If you look at the auto industry leader, ASML, whose market share has been growing even faster than applied materials in the last few years, they also suffer a DIP in 2009 and a DIP in 2013. Although the DIP here was not nearly as severe as a DIP experienced by applied materials. These two charts remind us that the industry is not going to be in a bullish situation forever, even though we are experiencing high profit levels now, but we need to be mindful of the fact that eventually it'll come down and there might be even losses in the future. That's why we need to look at the news events as well as the charts very carefully to know when to buy and when to sell. This is straight from the 10K report, the annual report from applied materials. The table here tells us how much money the revenues each particular segment has been making and the operating income loss from each of the segments. I translate these numbers into percentages. From here, you can say that the leading segment definitely is a semiconductor systems segment. And if you compare 2018, 2019, and 2020, the percentage of revenues from this particular segment grew from 63% or actually decreased by 1% or 62, then it went up to 66%. More impressively, the operating income went from 77% to over the 74% and then in 2020 jumped up to 85%. And then applied global services occupied 24% of the net sales and 26% of the operating income. So that's the number two segment for the company and the display and adjacent market is only 9% of the net sales and 7% of operating income. So that's a very small slice of the pie. It's good news that the semiconductor systems segment is growing faster than the other segment because I believe this particular segment is more protected by their experiences and intellectual properties. Let's look at the analyst's opinions. Again, the closing price on June 29, 2021 was $141.92 and my target is $162. And I'll tell you in a minute how I calculated that. Yahoo gave them a buy rating and the high target is 195. Definitely way higher than the current price. The average target is 161. Very close to my target and the low target is 125. Roots and level here gives them a B buy rating, which is pretty good. Took ranks.com, gives them a strong buy and the high target is 196. Average target is 160. Low target is 139. CN Money gives them a buy rating. The high target is 195. Medium target 162 and low target 125. So if you look at the medium targets here, they're all pretty close to about 160, 162. Much higher than the current price. That's a very bullish scenario for applied materials. I always like to do my own calculations so I can understand how those other analysts get to their answers and sometimes my answer might be a little bit different from the other analyst's answer sometimes. Pretty much the same. What I did was that I took the current net earnings, the 12-month net earnings for applied materials, the current PE ratio and the current market cap and a stock price that about three days ago when the closing price was 141.76 cents. And from these numbers, I also used the assumption that the earning growth will be at about 24.9% a year and that's based on the earnings growth in the last three, four years. Also for PE ratio in the future, instead of using 29.2, which is pretty high, I took a discount that I want to be conservative. I only use the PE ratio of 23.4 for future years. And based on the current numbers and the assumption of earnings growth and PE ratio, I'm able to arrive at the stock prices for 2021, 2022, and 2023. And then to be extra conservative, I took the 10% discount of the three numbers and arrived at these three numbers. Then I averaged them and got to my forecast number of $162. I believe applied materials were likely to go even higher than that, but I usually want to be conservative and that's why I'm tentatively setting my short-term target $162 to be achieved by the end of September. Later on, if the price gets to that point, it gets above that, I will most likely revise this up. And when I do that, I'll either publish a new video or I will send out a Twitter message to alert my subscribers. Let's look at the charts and talk about technical analysis. This is the daily chart for the last few months. We can see the price has been pretty much flat. First, we see this overboard signal here on the RSI back in April and sure enough, the price started to drift down a little bit. And since then it's been going up and down and so far it hasn't been able to exceed that previous peak at 146 yet, but we're getting pretty close to that point. And then on the DMI indicator, we saw a recent bullish buy signal and MACD, a bullish buy signal. The most important part is that the current price is really approaching that 146 points. So it'll be critical to see whether the price will be able to break through that. If it can break through that, it will be a very bullish sign. Although we do see a higher high here, so it's a bullish sign also, but we just definitely need to exceed that previous peak. Let's look at the support and resistance levels for support. The current price now 141.92. The next level of support is 137, which is a 20-day simple moving average right here in the middle of the Bollinger Band. And the next level down will be 132, which is a lower Bollinger Band here. And then the next level of support will be at a 100-day simple moving average, the yellow dash line. And the next level down will be the 121, which is this historical support point. And then the next level down 118, this point. And then the next level down 114, this level. For resistance, the next level of resistance, which is a very strong resistance, is going to be at 146, which is the all-time high. And then the next level up will be actually from the Fibonacci extension, 23% at 154. And then the next level up Fibonacci extension, 38% at 158. And then the next level up 162, which is the 50% Fibonacci extension. Let me recap my price forecast. The current closing price is 141.92. My forecast is $162 to be reached by the end of September 2021. What are my strategies for applied materials? First, I will buy when the price bounces up from support level and sell when the price pulls back from resistance levels. And of course, if the price can beat the all-time high, and that'll be a very bullish sign, I'll most likely buy some more shares. I currently do hold some shares of applied materials already. And I'm holding some shares for the long term, because at least for the next two, three years, I'm very bullish on applied materials. But in meanwhile, swing trade the rest at the appropriate support and resistance levels. And I'll definitely be monitoring news events in case they alter the direction of the stock price. I'd like to mention that, even though I hold shares of applied materials, I will not pump the stocks relentlessly. For the viewers who've been following my videos, you will know that occasionally, I will tell people that I sold shares because there's a short-term peak that was reached and the price is drifting downward. Or I might say that I'm not buying for now because it's looking very bearish, even the long term. I'm bullish on a stock, but I'll just wait for a few more days until the chart becomes a little more bullish before I buy in. And often when I buy or sell stocks for the companies that I follow with my YouTube videos, I will alert my subscribers by way of my Twitter account. I'd like to remind you that, if you like what you've seen, please click the like, subscribe, and notification button. That'll encourage me to make more videos like this, and it will also encourage YouTube to direct more viewers to my channel. Thank you. Let's continue. My Twitter account is Dan, MarketSpaceL. I'd like to encourage you to subscribe to my Twitter account as well as to my YouTube channel that way you can get the latest updates on my stock trades, as well as any alerts that I sent out about the most recent news events that might have affected some of the stocks that I've been following. You can certainly also send me your comments, questions, and suggestions by way of my YouTube channel and my Twitter account. I'd like to remind you that I'm not a financial advisor. I share my stock trading strategies for educational and entertainment purposes only. If you want to sell or buy stocks, you should make your own decisions. And you should definitely consult with your financial advisors before you do so. This is about wraps up my video for now. I thank you for watching. How do we do here? And I'll chat with you again in the next few days. In the meanwhile, I'd like to wish you the best of luck with your financial investments.