The thing always happens that you really believe in; and the belief in a thing makes it happen. ~ Frank Lloyd Wright

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1 Fluidity Trader Chat Room w/cynthia E. - Monday, November 26, 2018: Page Begin Page End Chat Roll Time Monday CENTRAL Time Zone 6:30 *** Hello Fluidity Team Traders Welcome! *** 6:30 *** DAILY TRADE TIP *** *** The thing always happens that you really believe in; and the belief in a thing makes it happen. ~ Frank Lloyd Wright 6:35 forty1973: Good Morning Traders!! 7:15 JerryH: GM All 7:29 Saffa: gm 7:55 Phoenix: GM 7:57 tsurf: Good Monday morning all 8:01 Cynthia E: Good Morning Traders! 8:01 Cynthia E: Welcome back! I hope everyone had a wonderful long weekend, and a very Happy Turkey Day! ;) 8:02 tsurf: Good morning Cyn, yes great T-day 8:03 CRH: Good morning 8:04 Cynthia E: Great to hear Tsurf! GM CRH 8:04 Cynthia E: 1

2 8:04 Cynthia E: As suspected, we got very little movement or volume on Friday. 8:05 Cynthia E: Essentially, the half-day session tested the LOWER end of our 2-day balance between and , and at this point, we are opening with a "look below and fail" that is working toward reaching an upside balance breakout test at the upper end of the balance. 8:06 Cynthia E: Thus, with overnight inventory neutral to net long, we'll be watching for any long liquidation squeeze to adjust the overnight inventory, and in that pull back, we'll focus on whether the CENTER of the balance range (approx 2650) holds as support to encourage the upside breakout test. 8:07 Cynthia E: On the breakout, we'll be looking for increasing bullish volume, because we still need some proof of strength from buyers in order to truly have enough momentum to get back to the /19.25 swing highs. 8:07 Cynthia E: Otherwise, we are still in a position to squeeze longer term longs back toward the retest of the Oct low at 2603 and the Feb low at :08 Cynthia E: 2

3 8:08 Cynthia E: On 14400, we can see that Friday's half day created a small W bottom pattern, and the overnight broke above the neckline or Friday high to return to the upper portion of the 3-day range. 8:09 Cynthia E: So we'll be watching Friday's HIGH for the polarity test (old resistance should become new support). 8:09 Cynthia E: If we hold there, we'll expect the higher high to test the 3-day balance breakout. 8:09 Cynthia E: If we fail at the Friday high - then similar to balance ranges, re-entry into M patterns or W patterns target the 'opposite end' of the range. 8:10 Cynthia E: So failure at the Friday high targets a retest of the Friday lows. 8:11 Cynthia E: 3

4 8:11 Cynthia E: On 3600, we get more details of the W bottom pattern. 8:12 Cynthia E: We are opening in strong bullish. Price is above CL, both STOs are in strong bullish mode, and the ERG is above zero. 8:12 Cynthia E: We can also see in the pull back in price, the ST STO and the ERG (purple), that we are currently in a valley or retracement phase. 8:12 Cynthia E: So we need to see if this retracement holds at the polarity test, or if we extend all the way down into the W range. 8:14 Cynthia E: 4

5 8:14 Cynthia E: Here is our starting levels. 8:14 Cynthia E: We have the POLARITY test at the YH swing high as mentioned at :14 Cynthia E: GREEN at the ONH swing high at :15 Cynthia E: And RED at the W bottom swing lows at / :15 Cynthia E: The 2 levels are close enough there that you must consider them as 1 level. 8:15 Cynthia E: Alright! Take the remaining 15 mins to review and get set and ready to go! 8: minutes ago GOOD MORNING-Gapping higher this morning following exponential odds of rallying due to Thursday and Friday combination of weak/poor highs. GAP trading rules in play. Difficult markets as many assets are correlating together 8:26 tsurf: Thanks Saffa 8:29 Cynthia E: 1 min to go 8:30 Cynthia E: Layla 8:30 Cynthia E: Here we go! 8:30 Cynthia E: DO = :37 Cynthia E: Remember when price has out accelerated CL and we have a lot of point distance between price and CL, then there are 2 possible patterns. 8:37 Cynthia E: We either see a directional valley or retracement that allows CL to 'catch up' by PRICE as the market cycles. 8:38 Cynthia E: Or we see a sideways bull flag consolidation that allows CL to 'catch up' by TIME as the market pauses. 8:42 Cynthia E: Heads up! 8:42 Andy: cup showing :42 Cynthia E: Testing the GREEN line 8:42 Cynthia E: TARGET on this GREEN line test is the retest of the balance high at and the gap above. 8:47 Cynthia E: 1 tick close so far 8:47 Cynthia E: No LONG 8:47 Cynthia E: Now! 8:47 Cynthia E: Look at how CL is catching up by PRICE and TIME! 5

6 8:48 Cynthia E: We now have a new RED line forming at with CL working to validate the break there! 8:50 MikeS: Good morning! 8:50 Cynthia E: Good Morning Mike 8:51 Cynthia E: GREEN adjusted to :51 Cynthia E: Still NO CLOSE above just yet 8:54 Cynthia E: There is the CLOSE above 8:54 Cynthia E: Here is the immediate pull back to retest for support. 8:55 Cynthia E: In general team - I would qualify this as a relatively low ODDS setup because we are still IN BALANCE in the bigger picture, and we have the 3-day high just overhead at :57 Cynthia E: Took there (took the WALK due to 'low odds' just mentioned) 8:57 Andy: time change 3m 8:57 MikeS: BOOM 8:57 MB: same here cyn 8:57 MB: good job Mike 8:57 Cynthia E: Nice job Mike - you must have been in pretty low there! :) 8:57 tsurf: Good going Mike1 8:57 tsurf: wtg Cyn 8:57 MikeS: Thanks. Good job MB & Cyn 8:57 Cynthia E: Great job MB and Case! Nice going 8:57 tsurf: good going MB and Case 8:57 MikeS: I was in at based on breakout 8:58 MB: wtg case 8:58 Cynthia E: Nice Mike! 8:58 MikeS: Thanks :) 8:58 JerryH: wtg 9:00 Cynthia E: Now we are getting extension toward the 3-day balance high test 9:03 MikeS: Good job Case 9:03 Cynthia E: C now open in the upper range of B, and testing into the balance breakout and gap above to :06 Cynthia E: We do not yet have another pull back or retracement to establish a new GREEN line o the top side. 9:07 Cynthia E: CL has caught up on the bottom side, so the new RED line = :17 Cynthia E: Now we are seeing a small retracement here ahead of the actual balance breakout test 9:17 Cynthia E: Again - look and measure STRENGTH of trend. 9:18 Cynthia E: The stair step is now :18 Cynthia E: So just like our lesson and charts we covered last week. 9:18 Cynthia E: We're watching to see how the polarity test turns out. 9:18 Cynthia E: As Saffa said - a swing low ABOVE the level shows great strength. 9:19 Cynthia E: At the level, is a 'clean' stair step hold. 9:23 5 minutes ago IMPROMPTU webinar TODAY at 12PM EST to discuss the current market - Register here: 9:24 Saffa: for anybody interested.. 9:24 Saffa: so slow today 9:25 Andy: thx 9:26 Cynthia E: Agree Saffa! 9:26 Cynthia E: Very much an after holiday pace this morning. 9:26 tsurf: yes, thanks Saffa 9:26 tsurf: seems like market trying to get things sorted out 9:26 JerryH: thx saffa 9:27 Andy: time change 3m 9:27 Saffa: oh aye everybody still in holiday mode it seems 9:27 Cynthia E: Seems that way 9:28 Cynthia E: Here is our stair step or polarity test at :28 Cynthia E: Let's see if we hold CLEAN with the candle body at or above the level, and bounce, or if we actually CLOSE a bar below to create an 'overlapping' stair step. 9:36 Cynthia E: Heads up! 9:36 Cynthia E: Getting a little surge in volume as we head into D period 9:37 Cynthia E: Weak high on the B/C high relative to the prior 2-day high 6

7 9:37 Cynthia E: GREEN now = with extension above the balance high 9:38 Cynthia E: We don't have a new bounce yet so the RED is still at for now. 9:38 Cynthia E: There is not a new SWING low to work from thus far. 9:46 Cynthia E: Well - so much for speeding up the pace. 9:46 Cynthia E: Haha - looks like we slowed right back down! LO 9:46 Cynthia E: LOL 9:47 Andy: market digesting GM news 9:57 Andy: time change 3m 9:59 Saffa: dont know if you've seen the news regarding Optionsellers.com Cyn... 9:59 Saffa: 10:00 Saffa: you did some kinda options back in the day if I recall correctly? 10:01 Saffa: natural gas been especially volatile 10:02 Andy: crocodile tears...lol 10:02 Saffa: lol 10:03 tsurf: not so sure if an apology would make me feel all that better, lol 10:04 tsurf: RL now? 10:04 Andy: naked put sellers = no risk strategy... lets just burn up client money...lol 10:05 MikeS: That's the level I have tsurf. 10:05 tsurf: :-) 10:05 Cynthia E: Yes! Great Tsurf! 10:05 Cynthia E: The New RED is now :06 Cynthia E: I have not Saffa - Yes I use to trade stock options as well as NDX options years ago. 10:06 Cynthia E: Haven't done that in a long time though 10:07 Saffa: There is no rogue wave to blame. Countertrend trading always fails eventually.. 10:07 Saffa: unless you've become a master at the rtm side 10:12 MikeS: Saffa, that video is difficult to watch. Not sure if the guy is sincere or not. 10:13 Saffa: I've not watched it myself Mike 10:13 MikeS: Appeared mechanical but maybe he is sincere. 10:14 Saffa: just a reminder that we've been in a volatile period 10:14 MikeS: Yep 10:15 Saffa: not just the equity indices but all cross the board 10:16 Saffa: obviously that's a different kinda trading, but trading nonetheless 10:16 MikeS: Agree 10:18 Saffa: seems we not done on the upside just yet, slow grind 10:19 Saffa: might we get a fake out first time around if we manage to breakout after all this consolidation 10:19 Saffa: goodness me this is slow yawn 10:20 Cynthia E: Yes indeed Saffa 10:20 tsurf: lol Saffa, no what I expected after the days off- 16pt range, lol 10:20 Cynthia E: I haven't clicked the link yet Mike... 10:20 Saffa: think I might just take my 6ticks and be back tomorrow 10:20 Cynthia E: Looking that way for me as well Saffa 10:21 Cynthia E: So this is one of those situations where CL is 'catching up' by TIME. 10:21 tsurf: 6 tks looking real good right now :-) 10:21 Cynthia E: We are getting a flag consolidation range at the top of our trade (P shape day) 10:21 Cynthia E: Squeezed some shorts early from Friday's trade, now signs of "few to no new buyers" 10:21 Cynthia E: Let's do our summary charts and wrap it up for the day. 10:23 Cynthia E: 7

8 10:23 Cynthia E: Here is the final :24 Cynthia E: As Saffa said, very slow pace and tempo today, which means we should trade with caution, and for SMALLER targets. 10:24 Cynthia E: Off the open, we created a new swing low, then rallied slowly to breakout above the ONH swing high / green line. 10:24 Cynthia E: That trade generated a 'walk' opportunity, and did extend for the at the test of the 3-day high. 10:24 Cynthia E: That said, part of the reason for the slower tempo is the fact that we are still currently IN BALANCE. 10:25 Cynthia E: Which in and of itself means, SOH or at least trade with caution. 10:25 Cynthia E: You can see now that the initial GREEN would be our POLARITY level at :25 Cynthia E: The NEW GREEN = :25 Cynthia E: The NEW RED = :26 Cynthia E: Neither sides have triggered an additional trade opportunity yet today. 10:26 Cynthia E: Are there any final comments or questions on price or trades while I get the final histo chart? 10:26 Saffa: nope thx Cyn 10:27 MikeS: All good 10:27 Andy: time change 3m 10:27 Cynthia E: 8

9 10:27 Cynthia E: Here is the final histo. 10:27 MB: thanks cyn, see you tomorrow 10:27 tsurf: yes Thx Cyn! 10:27 Cynthia E: P shape day thus far - with the balance high at /71.75 and the GAP overhead to :27 Case: See ya tomorrow, thanks 10:27 tsurf: not much effort to fill that gap 10:28 Cynthia E: We also have the gap below us now to the Friday high at :28 Cynthia E: Exactly Tsurf! 10:28 Cynthia E: Very weak in fact! 10:28 Cynthia E: Alright! Everyone have a wonderful afternoon. Maybe the market will wake up a little more tomorrow! ;) 9

10 10:28 Cynthia E: Bye for now! 10:29 MikeS: Thanks Cyn. All have super day. Back at it in the morning. 10:29 JerryH: Thx Cyn 10:29 Andy: thx Cyn 10:36 Andy: waited all morning for that move +2 10:37 Saffa: nicely done Andy! 10:37 tsurf: great Andy, wtg 10:38 JerryH: nice going Andy 10:38 Andy: thx 10:40 tsurf: was wanting just a bit more pullback towards the RL, ran away w/out me 10:41 Saffa: yes same surf 10:41 tsurf: lol, and run it did 10:41 Saffa: Andy was sniper like 10:41 tsurf: ya he was, very nice work 10:41 Saffa: indeed 10:42 Andy: felt they had to be stops at 62.25, D low 10:43 Andy: IB still intact, tell for possible RTM day 10:46 Saffa: yes good analysis and execution Andy 11:20 Andy: AAPL testing lows End of Chat Roll for Monday, November 26,