TSLA ARKK XLE SP-500 

Dan Fitzpatrick here with my Fitz in Five video. I am looking at Tesla ( NASDAQ: TSLA ) today and not for any good reason other than you have got to stay away from this thing. I am just saying, the whole deal where everybody seems to focus on Tesla ( NASDAQ: TSLA ) and Twitter ( NYSE: TWTR ), oh, Musk is going to have to sell more stock in order to finance his acquisition of Twitter ( NYSE: TWTR ). That means down with Tesla ( NASDAQ: TSLA ) so that he can do that. Well, maybe Musk isn’t going to do that. Okay, well up with Tesla ( NASDAQ: TSLA ).

Leave the damn things alone, just focus on the chart. You don’t need to know the why you just need to see the what, that’s all. Knowing the why is something that people do before they go on TV. That’s what I do too when I go, I want to have something else to say other than, well Tyler, look at the chart. So you kind of need to know that stuff if you want to sound smart. But all you really need to do is have a couple of eyes that are working fairly well.

This is a stock, if you look at it from this direction, if this thing falls any further and starts to break through this level of support here, right around 700.00, I don’t know who is number 2 but we could see a time when Musk is no longer the top-dog on the wealth triangle. He is no longer the apex predator because of most of his wealth, I don’t know about most of it but a lot of it is tied up in Tesla’s ( NASDAQ: TSLA ) stock. So this is definitely a topping pattern.

The question is whether it finds support here or not. But if you just look at the moving averages, you see the 50-day moving average here, above, fine, the 200-day here. Look, this is how I kind of assess days, this will be crossing right around and about maybe next week. You are going to get the 50-day moving average crossing below the 200-day moving average. And by then the 200-day moving average is also going to be moving lower. So this would put this in a bonafide “danger Will Robinson” pattern, the stock is just going lower. We could see another rally here but I don’t know how, I don’t know, I don’t see it, I see just a bunch of heaviness here.

What I would do is, I would not own Tesla ( NASDAQ: TSLA ). Sorry, it’s true. I hope I didn’t activate anybody or trigger you. Here’s another one, this will get you all lathered up, ( NYSEARCA: ARKK ), I wouldn’t own this one either. Let me go back to Tesla’s ( NASDAQ: TSLA ), just stay away from this, that’s all. Focus on energy, that is what I am focusing on for Stock Market Mentor members, and even that, that stuff is struggling right now. The uptrend is still intact ( NYSEARCA: XLE ) but it is kind of struggling.

When the market is down so much in a day ( INDEXSP: .INX ), this is down almost 4 percent, that is front-page news and I don’t mean the front page of the Wall Street Journal or Investor’s Business Daily, I mean like your home town rag. This is just really, really bad trading action and I don’t think it is the last time we are going to see this type of thing, we’ve got a long way to go team.

BMY SPY 

This is Scott with your Chart of the Day. I have a question for you, do you think Bristol-Myers Squibb ( NYSE: BMY ) has the biggest cup and handle of all time? Because if I zoom out here you can see, it has got a nice big cup, right there. It starts all the way back in 2016, and we are consolidating and trying to break out of this base here. And it coincides with, zooming all the way back to the highs back here in 2016.

But that is not all, that is just a daily chart. If I flip over to the weekly chart and zoom even further back you can see this even bigger cup and then potentially an even bigger handle. Again, look at how important this zone is for this stock. This stock has a price history in this area, all the way back to the late 1990s and into the 2000s.

I think this is a pretty important price area for BMY ( NYSE: BMY ) and I think it warrants keeping an eye on. Now, full disclosure, I do have a position in the stock that I bought yesterday and added to today. And again, just because of a nice sideways consultative base and a break out of that base coming on okay volume. The volume the last couple of days is pretty positive.

But here is what has me even more excited about this stock, the fact that this stock hit an all-time high today. The overall market, the SPY ( NYSEARCA: SPY ), is still down near the lows. It did have a nice update today but it is still within a few percentage points of the lows. You can say it is closer to the lows than it is to the top.

I am interested in BMY ( NYSE: BMY ) because it is closer to the highs than it is to the lows. And in a crumby market, we want to pay attention to that relative strength. We want to pay attention to stocks that are near the highs when the market is near the lows because then, ideally, when the market turns around these stocks that are near the highs are making even bigger moves.

That is what I am looking for here on BMY ( NYSE: BMY ). I want to see a continuation of this move and more all-time highs to come. Now, just have a little short interest, there are about 35 million shares still short this stock and it is at the all-time high so there is potentially a little built-in buying that could come into this stock and juice it up even more.

So that is what I will be watching for here on Bristol-Myers Squibb ( NYSE: BMY ). I do think it is a tad extended from the 8-day exponential period moving average for a new buy but you could potentially watch for a little pullback or a retest of this breakout close to the 8 and 21-day exponential period moving averages.

U FB QQQ ARKK RBLX 

Dan Fitzpatrick at stockmarketmentor.com. I want to look at a couple of real duds here today and that is Roblox ( NYSE: RBLX ) and Unity Software ( NYSE: U ); I think Roblox ( NYSE: RBLX ) could really be described more as cinder blocks.

These are a couple of these metaverse stocks that are supposed to do really well from Mark Zuckerberg’s new Meta platform ( NASDAQ: FB ) thing. It is not my deal personally, I think you look like you are a welder wearing those stupid goggles and I don’t need an alternative universe or life, I like the way mine is just the way it is.

With that editorializing out of the way, it is going to take a little while for this thing to get going. And nobody knows, though many people think they do, nobody knows exactly how popular this thing is going to be. Of course, the future looks so bright you’ve got to wear welding goggles.

What we are seeing right now is, that this stuff isn’t working at all ( NYSE: U ). You’ve got two of these companies, they are video game companies that are supposed to be making major roles, they’re going to make a lot of money in the metaverse. Well, there is not much to the metaverse right now but there is a lot to these charts. Only the most fervent believers would argue that this stock is in anything other than a downtrend. This is kind of what the epitome of a downtrend looks like.

Now, you can say with respect to this, oh yeah but this is a good time to buy, it’s going to bounce. Well, first of all, not necessarily. It might bounce, but it might not. I could point to 18 different places on this chart where a similar bounce would have happened, only it didn’t. What we have got here is a 2-day rally starting on Thursday and then into Friday.

That’s the way this stock traded along with the QQQs ( NASDAQ: QQQ ), along with ARK ( NYSEARCA: ARKK ), which if I recall, has a pretty big piece of the action in RBLX ( NYSE: RBLX ), they buy all the stuff in the lower right-hand corner of the chart, meaning the penalty box in my view.

But here with Unity ( NYSE: U ), this was the deal, this was 2-days, a big move on Thursday, a big move on Friday. And so from bottom to top this thing went up over 30 percent, almost 35 percent if you are buying at the very low on Wednesday, and so that was a huge move. It only makes sense that this is retracing some of its move.

Here’s what I would do, this is not my trade. If I had seen it, and I didn’t, I would have bought the stock on Thursday morning simply as a deeply oversold bounce. The stock runs up above Wednesday’s open, which was 32.33, that would have really been my technical buy point, right when it broke up above the prior day’s low, and then that would have been some real good money. This is standard 59-Minute Trader stuff that I teach. This would have been a good trade, it wouldn’t be a bottom/top thing but it would be the good meaty in between, so that move is over.

What I suggest now is, (1) you recognize this is in a downtrend, it isn’t going higher, not for a while. If it does ultimately, fantastic. Are you still going to be around then? I couldn’t tell you, that is your decision to make but there is also a calendar element. How long are you going to be in this before the stock goes up? Now, if you are on the Cathie Wood plan, oh, it’s a 5-year plan.

Now, let’s look at Roblox ( NYSE: RBLX ) here. It’s the same kind of thing, this is actually pretty impressive. Because on Wednesday morning the stock actually gapped down, traded really high, fine, during the day. But then over the next couple of days, it printed higher lows and higher highs. AND even today, the stock has printed even yet another higher high, and I am doing this about 6-minutes before the close, I think we are pretty safe here to say it has printed another higher low.

So actually, Unity Software ( NYSE: U ), it’s not the same thing. Today’s intraday high was a little lower than Friday’s. Today’s low is probably going to close below Friday’s intraday low. But Roblox ( NYSE: RBLX ) here is a totally different thing. This is still really technically in a rebound phase if we are looking at this. I like to look at higher intraday lows and intraday highs.

I look at the intraday extremes to really get a sense of who is really in charge, bulls or bears? I would say that today was a turning point. At some point, this all ended. And I have got to say, right here, this was the top, 10:30 baby. This is why I call this my trading style, my intraday trading style, the 59-Minute Trader style. Meaning you shouldn’t be around more than an hour and typically even less than that.

This is where the stock peaked. You will see big selling volume here. The biggest volume of the day was right here on the way up, 10:15. The biggest selling volume was right here on the way down. This is a great example of my tenet, which is, that the most money is made right before the peak. And the most money is lost right after the peak, that is what we see here.

So technically if we are just looking at intraday highs and lows then the bulls are still in charge. But on an intraday basis, the bulls, they shot their wad right here. That’s the end of that and so now you have to look at closing location values here. Here, the stock closed, probably in the top quarter of the range. Here, the stock basically closed right at the high. And today, the stock is going to close just about right at the low, perhaps at the low, we are still trending lower here.

So this is a stock where you are definitely not going to see this video until tomorrow, you should have sold today, that’s all I will say. This is how I look at charts, this analysis that I gave you, to me is a really helpful way to look at charts, especially in these choppy, choppy volatile markets. When I look at things within this context I get a real sense of when the strength has shifted.