In this episode of Tech Talk, Andy and Cody discuss the S&P 500 and spot butter, cheese and nonfat.
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(Transcipt auto-generated)
00;00;00;21 – 00;00;10;02
VOICEOVER
Future trading involves risk and it’s not suitable for all. Investor contact provided in the strike is meant for educational purposes and is not a solicitation to buy or sell commodities.
00;00;10;04 – 00;00;23;26
CODY
Tell everybody. Welcome back to another episode of Tech Talk. I am Cody. He is Andy. It is January 25th, 2020 for about 436 Eastern time in the PM. Andy, how you doing.
00;00;23;26 – 00;00;27;03
ANDY
In the PMS area?
00;00;27;06 – 00;00;28;10
CODY
Fantastic. Thanks for getting.
00;00;28;10 – 00;00;46;03
ANDY
Ourselves out of this. Like what was like cold weather? I mean there for a while there it was like a big cold snap, snowing every day. No skin flushing. Yeah, with the heat with wave. I mean, it’s just it’s like 45 degrees. That’s like ten. It’s like Bonnie and you out there shoveling driveways for people. Yeah. What’s going on with that?
00;00;46;10 – 00;00;48;22
CODY
I got to get the slush out of the ways the water can flow. It’s a big.
00;00;48;22 – 00;00;51;08
ANDY
Street. It’s right on places. I mean, water did.
00;00;51;11 – 00;00;53;00
CODY
Upkeep, a lot of upkeep.
00;00;53;03 – 00;00;56;06
ANDY
Upkeep. It sounds like a business opportunity for you.
00;00;56;08 – 00;00;57;05
CODY
Write it down.
00;00;57;07 – 00;01;02;22
ANDY
Right, Right. Yeah, right. That one down. Shoveling driveways up.
00;01;02;27 – 00;01;03;18
CODY
Put it in the bank.
00;01;03;25 – 00;01;07;17
ANDY
But in the bank. There you go. Should we talk about putting it in the bank here for a second?
00;01;07;20 – 00;01;08;19
CODY
Let’s talk about a stock.
00;01;08;21 – 00;01;31;06
ANDY
Let’s talk about the bank. So this is the S&P. And before we get started. So last time we looked at this, it was spelled SPRO, which Joe Schmidt corrected me. So in short, throw a little shout out. That’s why you have a thanks, Joe. It’s actually supposed to be spelled ESP you because you know what you’re at. But when you started in there, it was front month was always September and you is for September.
00;01;31;08 – 00;01;38;18
ANDY
So he was telling me yesterday that while it sounds correct is spelled ESP o drop you want a spot for you.
00;01;38;21 – 00;01;42;11
CODY
So that’s what we love about Joe. He’s just he’s people helping people. It’s people.
00;01;42;11 – 00;01;52;28
ANDY
Helping people. So go. Speaking of that, go check out our show bases loaded people helping people learn about this and and if you are and all that stuff from the guy that knows how to spell spell correctly, he’s actually not.
00;01;52;29 – 00;01;54;02
CODY
The salt of the earth.
00;01;54;04 – 00;02;01;21
ANDY
Joe Schmidt, Chelsea or Joe Schmidt. So thanks, Joe. Speaking of like putting it in the bank, I mean, this is the S&P.
00;02;01;23 – 00;02;03;23
CODY
It’s Rice calling from last time, by the way.
00;02;03;23 – 00;02;22;12
ANDY
This thing’s rocking men. And it’s just like, what a way to start the year. How about this? And I sold it, like, so high or low in the new record highs. I mean, I just it’s like, just get out of the way of this thing so it move these lines at all. Right. So this is first of all, on first wave second this is the third third’s always usually 120 230% the first move.
00;02;22;12 – 00;02;44;02
ANDY
So if we are correct in our assumption, then we should start to see some resistance slash pullback around 50 and a half, give or take. So let’s go take a quick peek at where that is on this daily note. Man, Look at that. That’s just like uncharted territory here. Yeah, I can’t even like, I got to scroll up to get that much scaling there.
00;02;44;03 – 00;03;05;20
ANDY
Okay, there we go. It’s just around there. So what’s a pullback? Probably something like this, right? Right there. But I mean, lower high climbed to new highs. And what’s interesting about, too, is that go and look at this one. Look at this. It tried to reject that yesterday and not so fast right back at it today. That’s a healthy sign as you.
00;03;05;20 – 00;03;09;12
CODY
Look at the close of yesterday. And that’s pretty, pretty bearish signal right there.
00;03;09;12 – 00;03;30;08
ANDY
Yeah, that would have been like, yikes, if they had open. So we always talk about like, you know, do you get the confirmation the next day? Right. So it looks to your point, bearish. We’re just looking at actually since this isn’t including today’s all was bearish but you know how does it open the next step and in this case broken So ipso facto, I mean, like I said, we looked at it on a weekly.
00;03;30;11 – 00;03;34;11
ANDY
We’ve had these lines drawn for a while. This looks like this is it’s just going to go to 50 and a half.
00;03;34;16 – 00;03;36;28
CODY
Let’s go keep funding those accounts, folks.
00;03;37;00 – 00;03;39;19
ANDY
What are you going to do? Is our retirement.
00;03;39;21 – 00;03;40;24
CODY
Move somewhere where there’s not.
00;03;40;24 – 00;03;47;00
ANDY
Stuff now, but then like, are you a super hot weather person and like, you don’t even put sunscreen on your on your head?
00;03;47;02 – 00;03;54;22
CODY
Yeah, I have to be somewhere fair weather, which I don’t know if I don’t know if that place exists. Arizona in the winter, Michigan in the summer.
00;03;54;22 – 00;03;59;20
ANDY
How’s that icing in You’re going to like moved and or something like that. Like outer space.
00;03;59;23 – 00;04;01;07
CODY
I’ll be a snowbird.
00;04;01;09 – 00;04;06;15
ANDY
Speaking of the moon. Speaking of the moon, get your members on.
00;04;06;17 – 00;04;07;20
CODY
Here we go.
00;04;07;23 – 00;04;32;04
ANDY
Hot button limit up today, Rock. And so we’re coming up on the end of the month here. And what’s really interesting about this is that you usually like you read enough stuff about technical analysis. You’re find that like longer term charts tend to trump shorter term. So monthly, Trump’s weekly weekly, Trump’s daily kind of saying. And so if the formation looks better on a monthly than on a weekly, you go to my place.
00;04;32;07 – 00;04;51;19
ANDY
Yeah, it’s all subjective, but whatever this is, this is a nice little round in here. You know, it’s pretty crazy to think that at 250 that that’s what’s happening. But, you know, you had this big downtick obviously this month. So this is that would have been November. And so that’s November. This is December. And then we opened higher, tried to break again.
00;04;51;19 – 00;05;12;23
ANDY
So you have one, two, three is swimmingly. It sure feels like we’re going to end the month higher from here. And Butters, my opinion, given especially with the way futures are trading, we only have a handful of days left anyways, so this candle could turn into a nice little hammer and that’s bullish. So what’s interesting about that and see we get that hammer and remember a hammer is like a long wick in a small upper body, basically a green body.
00;05;12;25 – 00;05;33;17
ANDY
And like the story behind it is it tried to break the market soundly, rejected it, then use it as more of a buying opportunity. So we had this big downtick couldn’t really solve through that wants to close here. Right But then even again you couldn’t solve through. And once again now we’re starting to round itself out. So what does that lead us to.
00;05;33;19 – 00;05;36;28
CODY
That gap or gap at 315?
00;05;37;00 – 00;05;55;11
ANDY
So a scary look at that. So this is starting around. It sells on awfully nicely. We’ll see. What’s interesting about this, too, is that, like, you know, when we think about Class three and I’m not trying to discount the moves and butter, obviously. Right. It could move back to three bucks, could be massive. But think about class three.
00;05;55;11 – 00;06;14;09
ANDY
I mean, going from 260 to 310 is that’s going to add value in a class three. I don’t really see I think about class three. I was a cheese and then way being success pay, right? But it’s like, hey man, butter has big enough moves. It can be in parcel two. So somebody mindful of but yeah this are we going the hammer out on butter What do you say.
00;06;14;11 – 00;06;18;27
CODY
I mean you know what I think we are speaking of hammers what it should look like.
00;06;19;00 – 00;06;21;20
ANDY
Speaking of hammers, what should it look like?
00;06;21;27 – 00;06;27;23
CODY
Here you get you get something looking like this by the end of the month and you’re saying it’s off to $3?
00;06;27;25 – 00;06;34;03
ANDY
Sure. I mean, it’s possible that gap that gap turns into a magnet that gets a little scary. Get it on. There it is a.
00;06;34;04 – 00;06;36;03
CODY
Buy at the buyer and butter right here.
00;06;36;05 – 00;06;37;05
ANDY
So let’s go.
00;06;37;07 – 00;06;38;24
CODY
That’s a buy on by everybody.
00;06;38;27 – 00;06;49;14
ANDY
What’s your favorite song by the Eagles? Take it to the limit one more time. We should play that on the floor. By the way, at any time there was a limit move.
00;06;49;16 – 00;06;51;27
CODY
Well, heck, butter right now is what limit up through.
00;06;51;29 – 00;06;55;03
ANDY
I’m staying on as it were, saying. Take it to the limit.
00;06;55;05 – 00;07;05;08
CODY
That’s the thing. It’s it’s not just one month. It’s it’s all the way through. I mean, if you take January out which is priced but all the way through July time. So it’s good price today.
00;07;05;10 – 00;07;21;23
ANDY
Let’s go let’s add out of that class for a Charlie to do non SAT. So this is again we’ve been looking at it only on a weekly basis right and what and we haven’t touched anything so we’re coming up what’s interesting about the weekly is that again today’s Thursday so we have another day tomorrow these ranges haven’t been very big.
00;07;21;23 – 00;07;42;11
ANDY
Right. But you’re about to engulf the previous week’s candle and if that starts to go, this could turn into a nice little again. It’s kind of what we’re seeing on the S&P speak. Right. But what’s interesting, we haven’t really looked at it as much as the month we had this big rally right here. This is September, October, November, December, barely put up any kind of a fight against this.
00;07;42;13 – 00;07;44;24
CODY
So here’s a small downward trend.
00;07;44;29 – 00;08;03;23
ANDY
They’re barely right. And so you had one to this close right here is below that candle. Right. And so you really have one, two, three, four months worth of price action totally engulfed by one month’s and then the subsequent three months afterwards barely retraces anything. Right. I mean, this that’s just a poor performance out of the bearish right here in response to this move.
00;08;03;25 – 00;08;28;16
ANDY
And then now we have this month is basically retraced nearly I mean, that closes 118, that closes 117 and a half. This is 117, This is 120 in a quarter, three months worth of price. Actions about to get engulfed by a month here once again. So that to me is a sign of strength. So I guess what sticks out to me is that you have this slug it put it it tried to get tested, couldn’t do it.
00;08;28;19 – 00;08;40;28
ANDY
And now are we going to do that again and just continually stair step ourselves up? If we do well, then it goes back to what we were looking at on the weekly. What’s the next target? Is this 136 one Yeah, right in here.
00;08;41;00 – 00;08;48;05
CODY
Which interestingly enough would be that big doji in October. Sure.
00;08;48;08 – 00;09;06;29
ANDY
So then that’s right here. Like you think about how much this contract has moved going from what we’re talking about doing is basically going to like right here. It’s not that big of a move relative to all this. Come on. So that this monthly like I said, we’ve only been looking at the weekly the monthly I think we have to give it a little bit of credit here.
00;09;07;00 – 00;09;25;08
ANDY
This one looks good. So I think you got to be a little bit careful here. I think I’d rather be long and short. Now you’ve got you know, you have this stochastic or starting to actually turn over to where it would be higher. And then this bad boy right here is about to cross zero for the first time since September of 2022.
00;09;25;10 – 00;09;26;24
CODY
That’s a pretty massive indication on that.
00;09;26;24 – 00;09;38;28
ANDY
Point for sure. So look at does that rock and so we get stocks butter non said rock and right now last one though certainly at least see me cheese.
00;09;39;00 – 00;09;40;20
CODY
Broke out of a downward trend but it’s.
00;09;40;20 – 00;10;03;21
ANDY
Trying to write in like futures headed I mean today cash was what it was a little higher it wasn’t a ton it was up a quarter on average quarter to set. So barely anything. Futures are at a premium, right. So I get March at 162. Right. So what if current cash -48 to change basically. Right. So futures are already forecast in that order to go up.
00;10;03;24 – 00;10;25;21
ANDY
What’s interesting is you’ve got class for getting to a point where it’s pretty close to $5 premium. The class three and seemingly bit there, we’re starting to see things can shape up in the cash market that could lead to some more strength. Right. And I think you can get some followers or strike, let’s say, not sort of clear that like 125 or what’s what what’s your number again, 123 spot, 797 below anticipated.
00;10;25;23 – 00;10;46;23
ANDY
That’s all right So so basically you’d say you get a 124 settle and not five and now you’ve cleared of that area. To me it seems like that this seemingly potential w taking shape. You’re trying to break out of this downtrend and you’ve got class for products moving specifically. You know, butter is leading the charge, but you have class four that’s on the move so they can get to be a little bit careful getting overly short.
00;10;46;23 – 00;11;06;12
ANDY
Class three here, specifically February is a different story. It’s got nearly two weeks price pick out bases loaded to learn more about that. But you know anything that beyond basic math and F but you know march on like this looks like you can just retrace a portions move and still be bearish. Right. So I think you got to be really careful here at this juncture.
00;11;06;14 – 00;11;07;02
CODY
Right now and.
00;11;07;05 – 00;11;15;02
ANDY
Be a little careful, little little leery. Still a little leery. Just a little. It’s a little not a lot. A little.
00;11;15;05 – 00;11;28;05
CODY
Slow. Okay. Well, that’s going to do it for another episode of Tech Talk. Andy, as always, we appreciate your awesome insights into these charts. This week. We didn’t have any week all in we we all think we’ve had anybody ask for a certain two weeks now.
00;11;28;07 – 00;11;31;21
ANDY
Okay. So the Hammer made its appearance this true?
00;11;31;21 – 00;11;35;21
CODY
It did. But we’re feeling a little lonely over here, folks. So if you guys can look at anything.
00;11;35;23 – 00;11;42;09
ANDY
Well, I mean, I can see this is gap there, too. So, like, she’s out, right like that.
00;11;42;11 – 00;11;45;12
CODY
We’re having a good time on our end. We just want to see some more of this. More time?
00;11;45;15 – 00;11;47;10
ANDY
When are you getting the cat, by the way?
00;11;47;12 – 00;11;49;12
CODY
I will never get a cat. I’m allergic to cats.
00;11;49;14 – 00;11;50;21
ANDY
You’re allergic to cats.
00;11;50;24 – 00;11;53;05
CODY
That’s just what I tell people. I’m not really, but I’m not.
00;11;53;05 – 00;11;54;15
ANDY
Really into cats.
00;11;54;18 – 00;12;08;07
CODY
Huge. Charlotte Page Driscoll In her team, we have made it to a thousand subscribers on our YouTube channel for all of her hard work in the team. And our goal for 2024 is to go from 1000 to 10000 subscribers.
00;12;08;09 – 00;12;09;08
ANDY
Thousand.
00;12;09;10 – 00;12;29;29
CODY
10,000 by 31 of 2024. So if you could be a friend, tell a friend, send this video to everybody that you know, even your exes, we don’t care. Tell them to like the channel. Hit the subscribe button, punch the notification bell. If we get 10,000 subscribers, we get a pizza party at the end of the year and we are stoked.
00;12;30;02 – 00;12;37;06
CODY
10th. It’s a big ask, but we’re going to get there. I’m going to go there. All right. Well, until next week and we’re at 5000. We’ll see you guys next time.
00;12;37;08 – 00;12;38;13
ANDY
See.
00;12;38;15 – 00;12;41;12
PAIGE
I love that I was like 10,000 is a fun number.
00;12;41;12 – 00;12;42;04
PAIGE
And you’re like, we’re.
00;12;42;04 – 00;12;46;26
PAIGE
Doing it by Dec 31. And if we do it, we’ll get a pizza…
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