Video summary
The video opens with Larry Pessavento from TFNN delivering a market update that he describes as a rare convergence of significant events, which he views as a powerful technical signal for traders. He points out that after reaching a high in August on the Russell index, the market has since trended downward but recently tested and reclaimed the critical 382 level three times. Pessavento argues that this specific pattern is extremely bearish because it represents a failure to sustain momentum above this key support zone, suggesting that any attempt to break higher is likely to be short-lived. He emphasizes that if the price moves above this level, traders should immediately sell at 29.75 with a stop loss placed just above the recent high, highlighting the favorable risk-reward ratio of such a strategy despite the need to hold positions over the weekend.
During the segment, Pessavento references technical analysis principles, specifically mentioning Gartley's advice to sell the first breakouts when they fail, noting that the current move is a much larger and more significant test than previous attempts. He outlines his plan to review several major asset classes during the broadcast, including gold, crude oil, stocks, and bonds, to provide a comprehensive view of the current technical landscape. The host stresses the importance of discipline in trading, advising viewers to avoid risking too much capital on any single trade and to strictly exit losing positions rather than holding them in hopes of a reversal. This approach is presented as the secret to long-term success in the volatile markets, ensuring that traders preserve their capital while waiting for clearer opportunities.
The update concludes with an introduction to the upcoming guest speaker, Stan Harley from the Harley Stock Market Letter, who will join the show after a brief intermission to discuss further market insights. Pessavento expresses his enthusiasm for Harley's analysis and confirms that he will be joining the conversation at the half-hour mark to continue the deep dive into the day's events. The overall tone of the broadcast is one of cautious optimism mixed with strict risk management, urging viewers to stay alert to the bearish signals emerging from the recent price action while preparing for the expert commentary that follows.
Read the full video transcript
T F N N headline news update.
>> Okay, folks. Larry Pessavento for T F N
N.
Uh
this is one of these days where you have
mother, God, and country coming together
at the same time, folks. This is an
absolute perfect signal. I don't know if
it's going to work or not, but boy, this
is what you look for. There's your high
that we made back here
in the uh
Russell back here on the uh that magical
day, if you remember, back there in
August the 12th. Now we've come down
here and we made a second, third,
fourth, 3-day rally at the 382. We hit
it once, came down today, tested it. Now
we're back up here again. Folks, this is
as bearish as it can get, if it's right.
And there in the three three words that
mean everything, if it's right. Well,
you'll know if you're right, because if
it goes above here,
there's your stop would be right there.
You're going to sell it at 29.75.
And your going to stop would be right up
here.
Now you have to carry it over the
weekend, but the risk reward on this
could be uh very, very good. Now we've
known that this thing has broken below
the 382, as it did right here, starting
to trend down.
Gartley said, "Sell that first AB's."
Well, there was another 382 here, if you
can see here, but this is the second
one, a much larger one. And that's why
it should be uh should be recognized as
such. Uh our guest today at the break
will be none other than uh Stan Harley
of the Harley Stock Market Letter.
And I will always enjoy what he's going
to be talking about. Now today, we're
going to walk over we're going to go
over
some of the things that have happened
the last couple of days
that are important as far as our
technical situation.
A, gold. B, crude oil, C, stocks, D,
bonds, etc., etc., etc. So, we're going
to look at some of these here today
and
hopefully you'll be entertained and
maybe with a little luck you can make a
buck.
That's the secret is don't risk very
much and don't take the losing trades.
That's a very, very, very important uh
thing to do, okay?
So,
we're going to be coming back when uh
Mr. Harley after we have our little
break here and then Stan will be our
break
at the uh
at the half hour.