In this episode of Tech Talk, Andy and Cody break down the latest moves in butter, whey, and Tesla. Butter has dropped a dollar per pound, Starbucks has new protein drinks with the potential to help whey markets, and Tesla’s charts are showing a classic bullish pattern. Tune in for sharp market insights, price action analysis, and what to watch next across commodities and equities.
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Hello everybody. Welcome back to another episode of Tech Talk. I’m Cody, he is Andy. It is Tuesday morning, October 7th. About 11:10 p.m. eastern time. 1010 Central time.
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1010.
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Andy, how you doing on this beautiful Tuesday?
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You know what we’re getting? We had a nice little rainstorm last night. It’s been over a month since we got any rain.
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We need it.
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We do need we need it. Needed.
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It sounds like we’re going to get what you guys are getting right now in about five hours.
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So I mean, that’s like the obligatory like let’s talk about the weather. Kind of saying like, how’s it going with the weather? Maybe not. Yeah. Or you didn’t comment on is the peacock that I have in my hand. Oh but that got some Hannah over the weekend. Yeah. This is waiting for you to say is that is that is it a peacock on your hand?
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Because I can’t really tell.
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So I couldn’t even see it. They put it up.
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I think, you know, we could probably do a little hand up for you right here if you want to wind up.
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I do.
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In the forehead.
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To make it work.
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All right. We have three charts to the two of them.
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Care request two from one of our OG listeners, Norma from Texas.
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We love Norma.
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Norma wants to see Dry Way and get this one.
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Where are you going to tussle.
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After talking to Norma? Might have to be what?
00;01;21;11 – 00;01;41;02
You get a Cybertruck? Or would you get it just like a truck? Truck. Okay. All right, so like I said, normals get two. We’ve got also this first one here is butter and it’s one that I like. It didn’t come specifically at request but it’s one that’s it comes up in conversation a lot. So why not listen to Spot Butter a weekly obviously a gigantic break you know, versus high.
00;01;41;04 – 00;02;07;04
You’re talking about nearly a dollar per pound. I mean, we touched we got super close to 162 weeks ago. So it was a slow 162 I mean you look at this. That high is 262. So from this high to this low you’re talking about literally a dollar amount like to the number a dollar per pound. And we’re starting to run into I don’t know if you can call this like a bullish like reversal pattern just yet, but you’re definitely starting to run into some traffic where a lot of volume is changing hands.
00;02;07;07 – 00;02;21;07
Yeah. And the futures market, it’s taking out the premium but it’s still a premium. So I guess the question is does do we start to see this round out. You had this bad boy on here I think you talked about the well this 1 to.
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5 since that one. The first gap at 155.
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155 double nickel and then 140 basically fills this one.
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So we’re going there. Which one I think of, I think we go to dollar 40. By the time we get to December 15th, I think you’ll see that dollar 40 gap get filled.
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Okay. Like you think about what we always talk about. Like is this like the best the bulls or bears can do in response to like a big move, right. And so far again from high to low, the market has shaved a dollar per pound. Yeah we’re not there. And I like flat price basis today. But in terms of its from its high to its low.
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The market is taking a dollar per pound out. Started to run a lot of support in terms of volume. But the price action is suggesting that we still have more downside to go because we always talk about like, you know, if you run into a place where there’s a lot of volume and then move away from that price, volume is a great confirmation of price action.
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You don’t get any volume and you move to a price like nobody believes in it. Yeah. So yeah, I mean, to me it’s like I think the death knell for what you’re talking about. Go into 140. It’s getting super close to like do or die time for that. Because again you’re getting a ton of volume. The futures are still premium.
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But here we are. If we can get a close below this low. So 162 then I think it’s a quick trip to 140. I totally agree with you because you’ll get all this volume changing hands. And again like this is the best that the Bulls can do after all. Or break and being super discounted the rest of the world.
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It’s not like you know, it’s not like the rest of the world’s at like, you know, 60 well.
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And we got global dairy trade happening this morning. This is one of those ones where we were on a two week hiatus. So GT’s coming out hopefully here in the next two hours. It’s going pretty long so far. I mean it’s been a long GDP this morning, but I got a lot of emails and calls last week of like, oh, you’re so bearish.
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This can’t happen. We’re not going to go there. The more people say that, the more I’m just like, yeah, I do believe we are. I do believe we’re going to see $1.40 maybe even lower than that.
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But what popped into my mind as soon as you said there was the expression, famous last words exactly. Especially in trading. It can’t go here.
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Exactly. And then it does.
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Hold my protein later and watch this.
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But it’s like, if you can’t move butter, if you can’t get something, like you said, the best the Bulls can do right now is a little bit of a rally from last week, the end of last week. That’s the best we got. It’s not like it’s not like we’ve retraced half of that move. What is that? Not even like what, two, 5% of that.
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Move? Barely. Yeah I mean it’s it’s nothing in the grand scheme of things going from 162 sitting now, one 69.5. Let’s nothing we saw that day on the way down. I mean, this is from two 23.5 to 186 and one, two, three, four weeks. It’s taken one to now, three going on three weeks to have $0.07 worth of support.
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That’s that’s nothing. Nothing. Yeah, I agree. So what will be like the inverse of that is if you can’t get a close here probably in the next like two weeks below 162 and you start to kind of carve out this bottom and you start to consolidate a little bit, maybe that starts to bring in the buy side because, you know, you look at a lot where like you know buyers, they don’t want to try to catch the following day if they want to actually wait to get more confirmation.
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You know, who can blame them in this market, right? When you wait for a more confirmation, then get more aggressive with price. So I think the the most bullish thing for this market. And I always butcher this when I say this. But a way to get a market to stop going down. See I just did it again. I totally butcher it.
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A way to get a market to go up is to get it to stop going down, and vice versa. And so if people are expecting or looking for a butter rally, I think the first thing you have to do is to get it to stop going down.
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Yeah, exactly. What is that going to take down here?
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I think we need to consolidate around this. Call it like 170 area. And if we keep trading a ton of volume and then conversely like you’ve got some gaps on the way up obviously right here like between these two guys there’s a little one right there. There’s there’s you know this one obviously filled this one. You’ve got some gaps that could theoretically be filled I think the like there is some concern about the potential.
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Like let’s say we run into a big promotional activity, like especially with the holidays right around the corner and all of a sudden a bunch of butter gets close, cleaned up unexpectedly, you know, maybe more than expected or whatever it is, and you get this big V bottom, maybe. But I think if you’re looking for a reason to buy butter, I think it has to be again to get it to go up.
00;06;38;08 – 00;06;48;01
You have to get it to stop going down. I think we have to see a period of consolidation, probably like this for several weeks, where people kind of like the dust subtle. And it’s just like, well, I guess this is.
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It that because, I mean, so far we haven’t seen a consolidation for weeks. I mean, unless you go back to that time frame right there in the middle of the summer. Yeah.
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If we’re going to see an end of this, I think you have to see some sort of consolidation I’d be more suspicious of. We just like, rip higher. Like, I guess I would be suspicious of that. Like, I’d say more of a rally. Yeah, I think more and more of a rally. So if you get, like, this type of action.
00;07;07;26 – 00;07;22;25
Yeah, that would be more, I guess, bullish than if we just. So I think that would be a rally. So but I agree I mean it’s 140. You talked about it I mean I certainly heard the same thing can happen won’t happen too cheap. I remember when I started in 2008 people talking about $2 butter being too expensive.
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Right. So yeah, it’s always a death now it can’t happen. Famous last words. Trust me, it can. And then some.
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Exactly.
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So yeah like I said I think we’re in agreeance. You get a close below 162. I think it’s just lights out for it and just you get like another big push. We get what is this one two, three, 4 or 5. You know, if we’re here, if we’re still kind of putting around this 170 price by the end of the quarter, I think that’s more bullish than anything.
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So we’ll see.
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But long ways away we still have a long.
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Way to go. So I kind of mentioned it already. You know the $9 or $10 protein latte. You said you had a few. Yeah last week. They’re good. They’re good. This is spot dry way. Now obviously they’re not taking physical dry away. It’s sprinkle it in a lot like that’s that’s not what’s happening. But the protein market especially is just on fire here.
00;08;11;23 – 00;08;40;07
And what’s interesting is at the spot market it’s had a nice gradual rally. It came well off the highs. That’s a massive move 74 down to 45. Huge move for that market. Big implications for class three. What is that $0.30 30 $0.30 1.06 pound per hundredweight $1.80. You know you talk about $2 108 basically what that launches. So when weigh wants to move in the influential in the class three space it can and does.
00;08;40;11 – 00;08;51;27
So yeah I look at this and say like this thing is still trending higher. It’s made a new high in this move. And sure it’s coming off the highs, but not a ton. I mean, it’s as high as basically 65 or trading to 63. I think what we’re due for is a test of this trend.
00;08;52;02 – 00;09;06;16
Yeah, I think so too. And I guess kind of backing it up a little bit when Andy and I are talking about is about a week ago was the last week Monday Starbucks came out with a new drink at all of their locations. It is a protein based drink, and essentially what it is, is you go in. I think they have.
00;09;06;16 – 00;09;28;07
What I saw was three flavors that is filled with protein, and then they have a cold foam that is also filled with 15g of protein. And Matt Gould and myself were traveling together last week, and we stopped in and got what’s the larger one? The largest one, I think it is at Starbucks, and talk to the lady who was making it, one of the managers at the store, and she had showed us how she made it.
00;09;28;07 – 00;09;49;06
And essentially what it is is you get 50 anywhere from 40 to 50g of protein, depending on the size of the drink that you have. And what is in that essentially is whey protein isolate to make the protein for these drinks. And so when this came out, we had talked to her in the morning. This is on a Wednesday.
00;09;49;06 – 00;10;05;28
We said how have sales been sick. Oh it was okay on Monday. Tuesday was better. What she had noticed is people coming from the gym in the afternoon, because you can also get a sugar free and buying this protein drink for around $10. I don’t know where else you’re going to find a drink like that with that much protein in there.
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Or a meal or.
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A meal or a meal. Exactly, exactly. And so for that reason, I think that’s why, you know, we were talking to Norma. Do you want to check out Dry Way? Because what were the implication being? And depending on who you talk to you in the company, there could be some pretty good implications of a rip on on dry.
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Wait, I.
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Have a hard time seeing it being bearish. Agreed that way. I mean, you could certainly make the argument that maybe it’s not as bullish as it’s some others may think. I have a difficult time seeing that being is like, wow, that’s super bearish, that there’s 50g of protein in this new drink. New demand. Exactly. You know, new protein demand.
00;10;39;23 – 00;10;58;29
And the other piece of it too is it’s those it’s drive the potential for like a fast follower. You know a company like a McDonald’s for you know, let’s pick on them. Do they show up and like, wow, this is, you know, really successful. It’s driving people into the store. We could do that too. Yeah we’ll see. But that to me like the technical piece of it, it’s trading along this nice uptrend.
00;10;58;29 – 00;11;14;20
But it’s also doing it in a way that’s not like you know it’s not this this is unsustainable price action huge break. It’s just not that rate of change. It’s just not sustainable. This like when you get this nice stair step up that’s a nice healthy uptrend. So I guess the next step here is do we go test this.
00;11;14;20 – 00;11;36;11
And it just like I feel like the testing of it was going to coincide with me. Just do this right there. So you tested it tested it again. What price is it. Basically $0.60. $0.65. If it tests that price and then bounces off of this trend, I think that’s a really healthy sign of of a continued rally. And these $0.60 is going to be kind of make a break for this market.
00;11;36;18 – 00;11;53;03
We could test it and trades at the nine and a half. Sure. But if we we trade 59 half and then go trade 61 and bounce off this. And the next step is testing this high of 6475. But I think that’s what we’re going to go do is break and then come. Because the way futures really aren’t they haven’t gotten going yet.
00;11;53;09 – 00;11;59;27
Correct. And we really haven’t seen the Nass or the PSR like respond to these high like right. You know the Nasdaq can be slow I think.
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Yet NASA’s been printing like 5858.
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It’s been very sideways.
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So it just doesn’t.
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But it’s also like I’ve, you know, in the past we’ve noticed when that when the Nass starts to move now it’s a, it’s a, it’s a freight train. Like it can it’s tough to get it to stop in either direction. Yeah. So yeah my like I said my gut is, is that we come back down and test this trend and then let’s see what happens.
00;12;22;09 – 00;12;28;27
But you’ve got a new like the large demand function that’s coming into the market that could be meaningful. We’ll see.
00;12;28;29 – 00;12;30;06
It could be. It could be.
00;12;30;06 – 00;12;36;00
So you got yourself a protein latte and now you’re getting yourself a Cybertruck. Let’s go.
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Biodefense.
00;12;36;21 – 00;12;37;03
Let’s go.
00;12;37;04 – 00;12;38;13
Oh, Tesla.
00;12;38;15 – 00;13;04;13
I don’t know anything about Tesla motors. Zero. I and I mean like I know Elon’s in charge and I know they make sure they make it is. Yep. There’s that’s it. Yeah that this thing like what’s that when I just when I look at this chart though, what sticks out to me is this right here occurring after this.
00;13;04;16 – 00;13;25;19
That’s bullish. You have this big break comes back tries to break again. Sales. But it also does it in a way that’s kind of like this nice rounding U-shaped pattern. And then you get the breakout. And then after this price action we talked about it with butter. This is the best that the bears can do technically. Yeah this close.
00;13;25;19 – 00;13;45;00
So this is a weekly. So this closed here. It was 421. Here we are at four 44.5. This would be a new high close on a weekly basis. If we’re here for the rest of the week. This is that’s a that’s a really good solid price action. Big break good spot. Tries to break again fails as a nice U-shape breaks out from that has the breakout.
00;13;45;00 – 00;13;58;12
You’re looking for it and then is cemented by like this kind of stair stepping higher. Like where’s the retracement of this candle. Right. Whereas like the attempt to even get back into this zero there’s just nothing. No, this looks strong.
00;13;58;14 – 00;14;00;07
It looks it looks very strong.
00;14;00;09 – 00;14;16;21
I mean, so there’s a daily I mean, it’s it’s the same as the weekly just it’s just more spread out. What’s interesting is that you had. Yeah I mean it’s every time it gets up to this 450 area, it’s never closed above it on a weekly basis. So this would technically be a new high close on a weekly basis, which is super.
00;14;16;23 – 00;14;24;11
But again, like this 450 area, I mean, if you break through this thing, it’s just like, you know, right to the moon, let’s go.
00;14;24;13 – 00;14;25;14
Down.
00;14;25;16 – 00;14;33;10
Yeah. So here’s that rounding pattern just on the daily basis. So we talked about that rounding. And then the breakout. Here’s what this looks like on a daily basis.
00;14;33;12 – 00;14;33;22
Daily.
00;14;33;22 – 00;14;56;25
And so this the lesson here is that like low high or low Ighalo high or low Ighalo all bumping up against this 350 area. So I think the technical term if you just, you know, you sometimes you just have taken a little bit of a little bit of faith and say like this is probably like since a bounce it came back in, you can, you could consider like 350 still as resistance.
00;14;56;28 – 00;15;18;23
Right. So when you have these higher lows that keep bumping up against a clear horizontal line of resistance, like you call that an ascending triangle, that is a bullish let’s, let’s well, I guess it culminates into where like can’t keep doing that. Like right here. Something’s got to change. You can’t keep having a high or low and then keep bumping up against the horizontal line.
00;15;18;25 – 00;15;19;08
So.
00;15;19;08 – 00;15;21;04
Right you kind of wedging yourself.
00;15;21;06 – 00;15;37;23
You’re exactly you’re creating sweat and so like here it’s like well it’s kind of do or die time. And so it’s such a great trading like setup because you’re looking for the breakout to the upside. It is a bullish pattern. But you know really quickly it’s it feels like if you’re a buyer here, let’s just say you’re buying it right at 350.
00;15;37;25 – 00;15;38;18
00;15;38;20 – 00;16;01;25
You’re looking for a breakout. If it doesn’t happen, you’re out. Basically, you fill this gap or you’re like, you really look like it would be this low of what, 325. So you’re only at 350. You’re getting out at 3:25 a.m. taking like a loss because it’s no longer making a higher low. But like look at the OP like the upside potential here is it’s a it’s always explosive from ascending triangles and descending triangles do the same.
00;16;01;26 – 00;16;11;17
Just flip it. The same thing is true. Yeah. So this is a great one. That’s a great like I said what’s a good anything about Tesla. But this is a great like technical pattern obviously a great trade.
00;16;11;20 – 00;16;12;26
Now we have to settle above for.
00;16;13;00 – 00;16;15;01
That to get the settlement to book for 50.
00;16;15;04 – 00;16;16;05
Okay.
00;16;16;07 – 00;16;38;18
That’s the next target again. Like that’s it’s like let’s say you’re just trading this pattern. You got to be happy with making 100 bucks a share and one to you know, this was on the 11th of September. We haven’t even been a month. Right. Huge move. So yeah, great trade there. Great example of the ascending triangle and the higher lows and how powerful they can be.
00;16;38;21 – 00;16;54;29
Well, Norma, we appreciate both charts that you want to look at. And butter is also a good one. We have to keep her eye on because I think more people are going to talk about it the closer that we get to the holiday season. And that’s just how it goes. But with that being said, if anyone would like to see any charts, please let Andy and I know, we can look at them next week.
00;16;54;29 – 00;17;10;00
Take a little peek at them, give us an email, give us a call. Here’s the text however you want to do it. Again, shout out to Norma. Thank you for being a valid listener and watcher and always giving us something new to look at. But, yeah, and then I’ll be back together on another episode of Tech Talk.
00;17;10;00 – 00;17;20;17
Until then, enjoy the weather that we’ve been having. Absolutely beautiful outside. Enjoy the rain. Finally get a little bit of moisture in the air. I have a great rest of the week and even better weekend. We’ll see you guys next time on TikTok!
00;17;20;17 – 00;17;23;10
What a great outro. You just. You’re so good at.
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That and you give the people some.
00;17;25;01 – 00;31;46;13
Gotta give them something.
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