Good afternoon everyone and welcome to
Trading the Close. My name is Lawton Ho
here with Verified Investing.
It's good to be here. It's been a while
since I did a live
a live show where I could reach out and
interact with you guys other than Crypto
Combat.
Drew is currently out sick, but he
he said he should be back tomorrow, so
hopefully he's all better and can be
back tomorrow. Before I go any further,
guys, please like this video and
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All right. With that being said, guys,
we're this is going to be a pretty
jam-packed show. We're going to talk
about the Qs, the S&P, the SMH, Baidu,
Sandisk, LIT, gold, Bitcoin, and maybe
some other things if we have time.
With that being said, let me go ahead
and share my charts and we can hop right
into it and look at the Qs. It was a
gnarly day here for the Qs, down about
almost 2%, 1.7%.
We were steadily moving in an uptrend
and
um potentially breaking out of an
inverse head and shoulders pattern. Let
me go ahead and show that pattern for
you.
So, you had this kind of inverse head
and shoulders pattern.
One [clears throat] thing I I note is
that we generally like to say that, you
know, bullish patterns to closer to the
highs of the chart are less likely to
play out. And in this case,
less likely to play out here in the case
of the Qs
with a measure move up 10%. Now, are the
Qs Were the Qs going to push up 10%?
Uh
unlikely. But,
right, we see that we've come down well
below that neckline.
So, we're looking for additional
factors, areas of support, resistance
here on the Qs. And the key area that
I'm watching, that basically everybody's
watching for the Qs to hold, not only
for the near term, but by end of year,
is the key $700 level. Not only is it
Not only is it
a key psychological level, there's a
nice gap fill
down here from the 3rd of August. So,
this is going to be a key area of
support to watch here on
the Qs.
Additionally, moving to the S&P, the S&P
was trading at all-time highs last week,
and this also took a tumble.
Down about 0.7%.
Um
watching this, look at this beautiful up
sloping trend line that did end up
breaking. Uh looking for support in and
around 760 to 757 range. That key area
that should potentially provide a bounce
for the S&P, but
as we know, the S&P, just from the
beginning of the year,
had a great push up and is up was up
about 13% year-to-date. Now only up
11.6%. So, we'll see if we can hold this
key level over here around 760 on the
S&P.
Uh the day was not kind to the
semiconductor industry with the semis
coming down pretty hard here.
Uh was down about, let's see, at its
lowest down about 5% on the SMH, which
is the uh
the ETF that tracks the overall
performance of the semiconductors in
general.
Additionally, taking a look at this, if
we continue lower, I'm looking for
support at this gap fill here around
545.
But, you could potentially
um
just be seeing a
Let me go ahead and draw this.
A retest of this previous head and
shoulders pattern. The SMH had a
beautiful head and shoulders pattern.
Shoulder, head, shoulder that it tried
to break down below, retrace to, maybe
going to test this trend line. Although,
it's not quite a head and shoulders
pattern anymore. It should be a decent
trend line to watch. If we can break
below it, we potentially could be headed
lower.
But, on the flip side,
you could be putting in some bullish
patterns as well, right? You're starting
to create some nice down sloping trend
lines that we attempted to break out
here. One, two, third hit, maybe the
fourth hit, you have a breakout. Um
it'll be something to watch moving
forward.
Next one is Baidu. Guys, Baidu got
absolutely smashed today. Down about 13%
at its peak from yesterday's close was
down about 14%. The Chinese company um
unfortunately missed on both earnings
and revenue expectations. And today, you
can see basically where it's closing
now. Look at this level where it found
support. I apologize if it's a little
small. I'll try and zoom in for you. All
the way back from August of last year,
there was a really nice trend line or
not trend line, gap fill. We basically
hit that level and are closing at that
level. Now for me on Baidu, it's not to
a level where I'd consider, "Hey, you
can consider a buy here, picking some
up." But if Baidu gets a little bit
lower, there's a ton and you can just
scroll back and take a look, a ton of
support around this level. Basically
anywhere between $80 to $90, there
should be some support there for Baidu.
The Chinese stocks have been relatively
weaker, right, to our stocks here at
home. So,
interesting to take a look at there on
Baidu. Next up, SanDisk.
And wow, what a reversal and rejection
here on SanDisk, right? SanDisk looked
like it was breaking out, potentially
looking to move higher. For me, I was
watching a couple key
down-sloping [cough and clears throat]
trend lines
here on SanDisk that we were looking to
break up and out of and look, we finally
did last week, Wednesday and Thursday.
After it reported earnings. And we had a
huge surge, move up 47% guys, basically
since last week Monday, right? So, we
had this really nice green candle and
Friday continued pushing higher, right?
And yesterday it looked like the party
was simply going to continue.
But the move today not only reversed and
gave up all of the gains yesterday, but
actually came back lower and closed
lower below Friday's level.
What does that mean?
Well, that means because of the large
amount of gaps on the chart, we have a
couple great levels of support should
SanDisk continue lower.
For me, $15.28
should
provide support here on SanDisk, right?
Should provide support tomorrow. It's a
key level I'm watching tomorrow. Um
we are always trading and looking for
things to trade on uh in the live day
trading room.
If SanDisk comes down to that level,
make sure to check our track record
tomorrow. If you're not a member,
somebody I can pretty much guarantee
that somebody is likely going to take
SanDisk at least for a scalp somewhere
between $15.25 and $1,500,
right? $1,500.
Next up is L I T E.
That's something we're going to take a
look at. L I T E kind of, you know,
uh
sister {slash} competitor adjacent
company to SanDisk. Also, same story.
SanDisk down 9%.
L I T E down about 10% today. From its
lows here uh in July, had a great run up
until yesterday's price action up 66%
guys.
But, this big sell could be a signal
that potentially wants to go lower. As
we're breaking a key up sloping trend
line here, um next level support for me
and the area that I'm likely targeting
tomorrow is around this 820.50 level
around there for support tomorrow. Maybe
for a quick scalp. We see we see SanDisk
here at 15.28, but L I T E they're kind
of equivalent gap is around 820. 5,
right? Should be a decent level of
support if L I T continues to come
lower.
Next up, looking at gold. Gold is
looks like it potentially wants to go
higher. Um
for me potentially putting in a bull
flag here on gold. Unfortunately, not
able to really push higher today.
But that's not too strange considering
the overall markets were down.
But should gold uh continue to go lower,
you can create start to create some of
these inverse head and shoulders
potentially creating a massive one here.
Left shoulder, look at this big head,
and potentially right shoulder. This is
what I'm watching. Let's say you get a
retrace down under $4,200. That's a
level that I personally target for a
potential buy there in gold, right? So
that's something to take a a a look on.
That Let's go ahead and find that
measured move here on gold.
Let's say it does end up making that
Well, that would be about a $670,
$700 move to the upside, maybe closer to
that $500, $5,000, excuse me, level
there on gold, right?
Next up, I'm taking a look at Bitcoin,
which is putting in kind of a bull flag,
right? And looking to potentially break
up and out of that bull flag and some of
these down-sloping trend lines.
Watching this potential breakout out
here, Bitcoin was testing this beautiful
down-sloping trend line that hit. Let's
go ahead and see one, two, three times.
This is the fourth hit. Currently unable
to really close above there, but we'll
see what it does later on in the
evening.
And potentially, right, it let's say it
closes above, confirms, then you might
see a move higher there on Bitcoin,
potentially seeing a breakout to the
upside.
And let's say
Bitcoin ultimately does close above and
confirm,
well, we're looking at a couple key
levels for resistance. For me, the
$6,700 level is going to be a key level
of resistance followed by the $70,000
level, which I'm sure the Bitcoin lovers
would love to see
price get to.
The last thing I'm going to talk about
today is oil. And oil
>> [clears throat]
>> had a
had a slightly down day today.
We saw that yesterday that tensions
continued to raise between the United
States and Iran.
But something I want to note on the
chart of oil
is that we're starting to put in some
bullish patterns. And today
>> [clears throat]
>> and yesterday's price action lead me to
believe that we could be on the verge of
a potential potential, excuse me, break
up and out
to the upside.
For this measured move, shout out to
Drew, putting in this nice inverse head
and shoulders pattern, that measured
move would be a move up around 14 to
15%. Now, it's important to note, guys,
that with trend lines, they don't have
to go to that full measured move.
However, right, it could just be a
signal that this favors a move higher,
maybe closer to that $90 level there on
oil,
or even that $100 level we saw back in
March, April, May when the conflict
first started. All right?
With that being said, guys, that's all I
have for you today. Again, guys, my name
is Lawton How here with Verified
Investing, just filling in for Drew.
Unfortunately, he's sick, guys, so I
appreciate you guys tuning in and
bearing with me. Don't forget Gareth and
I just launched a service together, the
Million Dollar Long-Term Investor with
myself and Gareth Soloway, really
focusing on some long-term plays,
creating
something we can really be proud of. Uh
go ahead and scan this QR code down
below. Thank you guys for all the kind
comments in the chat. I love it, guys.
Uh with that being said, I hope you have
a wonderful rest of your evening and
we'll see you tomorrow. Have a good one,
guys. Take it easy. Bye-bye.
>> [music]