Transcription
Welcome to Top Trading, guys. Today is the 2nd of February, and it's Sunday night. Let's take a look at the market conditions and see what the market looks like for the upcoming week.
Right, so folks, remember I was on vacation, and now I'm back. For those who are joining for the first time, the market is still bullish. Overall conditions are bullish. I understand that Trump is pounding the table with tariffs, but we still need to see how the market reacts.
If you take a look at the VIX, there is no fear gauge in the market. That is one of the reasons conditions are still bullish. However, we're going to take a look at the smaller time frame as well.
Right now, this is the daily chart. As you can see, we had a divergence from here to here. Actually, the market has had a divergence going on for quite a bit, but still, price exchanges are above all the SMAs. If you apply the technical fundamentals I teach, you can see that continuation is bullish from all the way here to here.
So right now, conditions are still bullish, but we're going to take a look at the smaller time frame and see what the market looks like. The next support area is right here at the 100 SMA, which is around the 597 area. Let's see what the market is going to do from there.
Okay, sorry, I still have a cough. If you see here on the 1-hour chart, look at that. You see tons of mountains and valleys everywhere, but we have a double top right here, and that's your bearish divergence. The market pulled back, and we broke the cloud conditions.
Now, if we take a look at the sloping support, the market is building. You see that sloping support is building. Once the support breaks, then we are going to go lower. This is the linear line; if this linear line breaks right here, the market wants to go lower.
Most likely, the market wants to go... one second. So we did bounce, retest, bounce, and now we are back here. If this support bounces, then we will be going to this area.
There are always two sides to the coin; there is no one side here. Keep that in mind. We never know how the market maker is going to play because, over here, as you can see, bulls and bears are everywhere.
If you see a bounce, then this would be your resistance, and there could be a rejection at 606, and we could go lower. If we bounce and break this 597, then most likely the market wants to go around this area. But it's not going to happen on Monday; eventually, if you ask me, based on the setup, the market is breaking the major support.
Apply the technical SPX class, and you will understand how things are working here. Conditions apply to all the classes, folks. There's a combination of the classes you apply, and then you see what the market is doing.
Most likely, they want to go to 585. That's what it appears to me. But when Monday and Tuesday come, that's when we need to trade by the cycles. Conditions are bearish; sloping resistance and sloping support are about to break.
Once the linear line breaks, we could go lower and want to go to 585. So keep this area in mind. But remember, folks, this is not an easy one; it means going up, down, up, down. There are a bunch of traps. I see there are a bunch of mountains and valleys, as you can see. There are so many orders that must be sitting anywhere, so be careful.
Conditions are bearish. Overall, bears are present. Now, how the market maker is going to play is the game we need to watch because when the week starts, they have ample time to play around with the game.
These are the areas and price points you need to keep in mind. Now, we're going to take a look at some mega-cap stocks. Let's see what they are doing right now.
This is the 1-hour chart, so I want to take a look at the 30-minute charts also before we jump in. Sorry, I need to look into the 30-minute... oh man, it's looking horrible.
Yeah, it's looking horrible. The 30-minute chart is also looking bearish. We are at the linear line support. That's okay; the market wants to go lower. Volumes are bearish. The 30-minute chart, 5 minutes is horrible, and the 15 minutes... I need to see what happened.
Yeah, so this is a critical junction, folks. Be careful; the market might bounce from here. If they bounce, see how far they bounce. Keep this area in mind for tomorrow and see how the market plays and creates the cycle here.
This is about the Monday cycle, only one day cycle. If we keep this in mind and if we break this and then retest 597, then we are going to retest this, and we could go lower.
Also, folks, if we break this, keep it in mind for tomorrow. Let's see where the market goes.
Now, we're going to look at this channel that broke. You can see that beautiful upward channel broke. Whenever the market breaks the channel in any direction, it's a good shot. But you've got a crazy demand area right here.
This area to watch on the QQQ, keep it in mind. If this support breaks, this could be an interesting play at 570. But this could bounce. Remember, test, bounce, test, bounce, and then rejection comes. Then yes, we could go short.
So tomorrow, you need to watch for this one. Watch out for this support area at 517. If you see tomorrow it breaks, retests, and rejects, then we could go lower.
That's what the QQQ looks like now. So mostly, QQQ is finding support around this area. QQQ wants to go to 555. Keep this in mind for tomorrow. If you're playing anything on the bullish side, if this bounces, the bullish side is right here at 525.
Okay, so that's your QQQ. Now, IWM is not looking good. Look at that; several times we tried the top rejection at 230, and now IWM is looking bearish.
Look at this support. If you see IWM breaking this area right here at 224, that could be a crazy play for IWM. I like IWM over QQQ. I could dump.
After this, IWM... maybe Monday or Tuesday; nobody knows when this could happen, but IWM wants to go lower. If the bounce is good and then rejection comes, if the bounce rejection happens, then we could go lower.
Most likely, I am looking bearish. Yes, let's look at Bitcoin. Bitcoin, Bitcoin. If you see Bitcoin, it's been a while since we looked at it.
As you can see right here, lower lows, bearish divergence. Folks, do you see what I see? There’s a bearish divergence; bears are lining up. Look at this bounce.
Let me show you something on a smaller time frame. Now you see what I see right there. This area is a critical junction. It looks like we test, bounce, test, bounce, and now we are again going to test this.
It looks like Bitcoin wants to go lower. At some point, Bitcoin wants to test this. If this flips, then we could go lower. This could be an interesting play, folks.
Whenever this support breaks, Bitcoin could be a good shot. Until then, you have to wait and watch.
So that's why if support breaks, we could go lower here to 74,000 at some point. I'm not talking about next week, but you never know when that happens. It could bounce, retest, and go lower. That could happen, but Bitcoin has weakness.
Okay, that's your Bitcoin. Let's take a look at Apple, folks, because mega-caps are important. Let's see what the mega-caps are doing now.
Apple had earnings, and rejection came. So Apple wants to go lower. Apple wants to go to this area. Apple could be a good shot, folks. You see that lower low; tops are falling.
Let's see what happens after that. Apple has weakness.
Okay, Microsoft... oh wow, Microsoft is also looking horrible. You see that? But we are at the demand zone. Several times, Microsoft has come here and bounced at 400 and 410.
Yeah, this chart is not looking good for Microsoft, whether on the bullish side or bearish side. Either direction is just sideways. I would not short. I like the short on Apple, but not on Microsoft. Microsoft is looking weak, but be careful because the demand zone is right there.
Okay, let's take a look at Google. I don't like Microsoft on this setup, so just leave it alone. I like Apple on the short side.
If you look at Google, Google is looking beautiful. Wow, look at this. Look at the sloping support building. Now see that? This is a 4-hour chart, so Google is looking bullish.
If the market is going down, Google says, "I want to go higher." What does it mean? It means Google says, "Watch this retest and bounce," something like this at 197 and bounce.
So Google is looking bullish.
All right, then Meta. Meta is looking bullish too. Man, look at that. Meta is looking bullish. It means a slight pullback; MACD crossed here, volumes are lower.
So Meta will pull back. Conditions are bullish. At some point, it could bounce, but Meta is looking solid, strong. So pullback, retest, and bounce. Meta is bullish.
Amazon got a divergence, but conditions are bullish, so mixed signals. Stay away. Bullish divergence, bearish retest, bounce.
Yeah, I don't like Amazon. All right, leave it alone. I don't want to spend too much time on it. Amazon is still slightly weak, but it's not bullish; it's bearish. The condition is bullish, so mixed signals. Leave it alone.
Okay, the bullish side I like because when the market goes down, Apple goes down. When the market goes up, Google goes up because Google conditions are bullish.
That's what I would see.
All right, other than that, folks, now we have February starting. I'll be going live tomorrow morning, Monday. I have created a WhatsApp group for those who want to join.
You can open your camera and scan this to join; it's a free one. For those who want to join the alert room for February, it's 30 days. We don't count by month; we count by days.
So 30 days you get. I know February has 28 days, but it's okay; you're going to get 30 days. I already owe everybody 20 days for those who joined in January. I was not here for a few days, so I owe you 20 days.
Please join; you can scan this. Do not scan if you have not paid for it, folks. Do not scan this if you have not paid. If you want to join this group, please go ahead and scan this.
Make a payment, and send me a message on this number saying, "Josh, I just made a payment." This is the number for any information you want.
You can make a payment and join the alert room. That's the alert room starting tomorrow, folks.
Tomorrow, we will be live at 9:30. All the hiccups are gone; hopefully, we'll be all right. I had a good rest, and now we are back in business.
Okay, so nothing much, folks. Let's see tomorrow how the market does, and we can go from there.
All right, take it easy, everybody. See you guys tomorrow morning, and don't forget to click the like button. Thanks, bye!