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One effective way to spot potential market opportunities on a sector level is to regularly monitor  Bullish Percent Index (BPI) readings for each sector. Sector-focused BPIs tell you the percentage of stocks generating Point & Figure Buy Signals. From that point on, you can drill down to specific industries to find ETFs or stocks presenting tradable opportunities.

On Wednesday morning, following an encouraging CPI report and a strong kick-off to quarterly bank earnings, the BPI for the financial sector ($BPFINA) dramatically rose.

FIGURE 1. BPI FOR FINANCIAL SECTOR ($BPFINA). After a selloff, 56% of stocks in the financial sector triggered P&F buy signals.Chart source: StockCharts.com. For educational purposes.

After hovering above the 70% line for months, a threshold that signals potential overbought conditions, $BPFINA declined in December, falling short of touching the “oversold” threshold of 30%. On Wednesday, it jumped above 50%, a line that favors the bulls as it indicates that over 50% of stocks within the sector are generating P&F buy signals.

In addition to a tempered CPI report, one which followed a similar PPI reading from the previous day, strong bank earnings were a key driver behind Wednesday’s dramatic market rally, particularly the big players: JPMorgan Chase (JPM), Goldman Sachs (GS), Wells Fargo (WFC), and Citigroup (C).

Let’s use PerfCharts to compare the SPDR S&P Bank ETF (KBE), our bank industry proxy, to these four names. KBE provides an equal-weighted representation of small-, mid-, and large-cap bank stocks, giving a wider context to view relative performance.

FIGURE 2. PERFCHARTS OF KBE, JPM, GS, WFC, AND C. Note that all four banks are outperforming KBE.Chart source: StockCharts.com. For educational purposes.

This quick view tells you that in the last year, the “big four” have been outperforming the broader banking industry. Wells Fargo and Goldman Sachs are leading the pack, followed by JPMorgan Chase and Citigroup.

Suppose, however, you wanted to take a diversified position by going long KBE, anticipating the possibility that the banking industry might see a favorable year, especially under the new White House administration. Take a look at a daily chart of KBE.

FIGURE 3. DAILY CHART OF KBE. After losing bullish momentum, KBE is at a juncture that is neither definitively bullish nor bearish. Chart source: StockCharts.com. For educational purposes.

Here are a few key observations about the chart:

  • The ZigZag line clearly shows the swing points identifying when the uptrend and near-term downtrend were broken (remember, uptrend = HH and HL, and the opposite is true of a downtrend).
  • The orange circles highlight the nearest swing low and high points, both of which were breached, making the near-term uptrend or downtrend uncertain at this time.
  • For the downtrend to resume, KBE would have to fall below $53, the November low (see blue dotted line) that served as support.
  • For a new uptrend to take place, KBE must stay above $53 and eventually break above potential resistance at $58 (see red dotted line) before challenging the two November highs.

In short, it’s a wait-and-see moment. If you entered early, a stop-loss below $53 or any of the consecutive swing low points (see ZigZag) can be helpful.

If you’re considering investing in individual banking stocks, among the four big banks reporting outstanding earnings results, Citigroup made a new 52-week high. I identified this using the StockCharts New Highs Dashboard panel.

FIGURE 4. NEW HIGHS TOOL. Citigroup made a new 52-week high on Wednesday morning and is worth a closer look.

Let’s take a closer look. Below is a daily chart of Citigroup.

FIGURE 5. DAILY CHART OF CITIGROUP.  A steady uptrend culminating in a bullish yet parabolic jump.Chart source: StockCharts.com. For educational purposes.

A couple of main points:

  • Citigroup saw a tremendous jump Wednesday as its Q4 earnings beat Wall Street’s expectations; analysts’ fundamental targets have been revised to as high as $102, with $80 as the median price target.
  • The Relative Strength Index (RSI) barely entered overbought territory (see orange circle), indicating strong momentum.
  • The Accumulation/Distribution Line (ADL) is recovering after a prolonged drop in money flows.
  • The On Balance Volume (OBV) shows significant buying pressure.

As Citigroup makes new highs, its parabolic move may be countered by a slight pullback. If so, the scenario is straightforward. If you look at the ZigZag lines and the support levels of the two most recent swing lows (see dotted blue lines), you can identify the prices that, if broken, could call the stock’s uptrend into question.

These levels, both of which should serve as support, are especially critical for any trader who has opened a long position. Also, monitor the $74 range that coincides with the last two consecutive swing high points. While these highs are near the current price, they could still act as a support level if the stock pulls back.

If you’re looking to enter a position, it may be wise to wait and observe how the price reacts to any of the support levels before deciding to go long. If the price falls below these levels, additional support could emerge at subsequent swing lows. However, in the case of a significant reversal, you would need to reassess the trend to determine whether support levels represent buying opportunities or merely temporary rally points in a bearish trend.

At the Close

Financials are showing signs of recovery and renewed momentum, with $BPFINA crossing a key bullish threshold. Strong bank earnings are driving market sentiment, with  Citigroup making a new 52-week high.

What to do: Add Citigroup to your ChartLists. Use a basic support and resistance perspective to guide your decisions and watch the swing points to determine the status of the trend.


Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

Just three days before US President-elect Donald Trump returns to the White House, Russia and Iran are set to finally sign a “comprehensive partnership agreement,” a deal that’s been in the works for months.

It’s a move that will refocus attention on a partnership that has shaped the battlefield in Ukraine, and which remains committed to challenging the US-led international order – even as the new US administration promises greater engagement with Russia.

Russian and Iran share a complicated past, peppered with conflict, and even now tread a fine line between cooperation and mistrust. And yet, the war in Ukraine has pulled Moscow and Tehran closer.

In July 2022, five months into his full-scale invasion of Ukraine, Russian President Vladimir Putin visited Tehran, his first wartime trip outside the former Soviet sphere.

Behind the photo ops and handshakes, his “special military operation” was not going to plan. His army had lost a lot of its initial gains as it was pushed out of the Kyiv region – and would go on to lose more later that year in two further successful Ukrainian counteroffensives.

Those drones have formed the backbone of Moscow’s attritional war, swarms of them – targeting civilian areas and energy infrastructure in an effort to break the resolve of Ukraine’s people and deplete its air defenses.

Moscow has also, according to the US, taken delivery of Iranian ballistic missiles – and while no evidence of their alleged deployment has surfaced yet, that news alone sent a strong signal to Ukraine’s allies that Putin was willing to escalate.

Less desirably for Moscow, it was also one factor that helped shift the debate around providing Ukraine with permission to fire Western-supplied long-range missiles at military targets in Russia. Several prominent Russian military bloggers claimed in early January, without providing evidence, that Iranian missile launchers and other equipment were being delivered to Russian military training grounds ahead of the deal’s signing.

Two-and-a-half years on from Putin’s Tehran visit, the dynamic has markedly shifted for both sides. Russia now has the advantage in Ukraine. It is gaining territory on the eastern front, and with the help of North Korean soldiers, slowly pushing Ukraine back in the Russian region of Kursk. The incoming Trump administration, to Moscow’s barely concealed glee, wants to start talks, and is making noises about letting Russia keep the territory it occupies, and stalling Ukraine’s bid for NATO membership.

Iran, meanwhile, is feeling decidedly less secure. Nikita Smagin, an independent expert on Russia and Iran, who worked for Russian state media in Tehran before the invasion of Ukraine, says the Pezeshkian administration is rushing to get this treaty signed with Russia amid multiple threats to its security.

“They are frightened by the Trump administration, they are frightened by Israel, they are frightened by the collapse of Assad, the collapse of Hezbollah,” he said, explaining that Iran is looking for a show of support.

Moscow may look to exploit this. The Russians have “a great nose for somebody in trouble,” said Alterman, and may be thinking “we can help them a little bit, but we can get them where we need them and extract more from them that we want.”

What more Russia wants is less clear. It has now indigenized Shahed production on Russian soil – and having paid its dues to Iran under an initial franchise deal to manufacture them, is now doing so with much less direct Iranian involvement.

Russia’s recent battlefield gains have come at a huge cost to its troops – so while its manpower issues are nowhere near the level of Ukraine’s, it could use more boots on the ground. But experts are skeptical Iran would be as amenable in this regard as North Korea, which has deployed around 11,000 of its troops in Russia’s Kursk region, according to Ukrainian and Western assessments.

“Even when Iran is fighting their wars outside Iran, they are not willing… to sacrifice their soldiers,” said Smagin, “and when we’re talking about Iran and Russia there is a very big background of distrust from the Iranian side to Russia.” And Russia may be wary of any mutual defense pact, given the more immediate threat to Iran from Israel.

“I think this is partly intended as a message to the Trump administration that we each have options,” said Alterman. “I think the Iranians are looking for tools they can use with the Americans… and there’s a sense that this gives them something to trade or something to talk about.”

Iran, facing the prospect of a possible revival of UN sanctions that were lifted under its 2015 nuclear deal, is urgently looking for ways to persuade the US to rejoin that deal, which Trump exited in 2018 – or restart negotiations.

For Russia, a new treaty with Iran – a country which might be closer than ever to being capable of producing a nuclear weapon – may be partly about dangling the specter of further escalation before a new US administration that it sees as less committed to Ukraine.

“The Iranians certainly have some worrying capabilities, the Russians certainly have demonstrated a willingness to use worrying capabilities,” Alterman said.

This post appeared first on cnn.com

Numerous Citibank customers reported receiving fraud alerts and having difficulty accessing their accounts Wednesday.

According to DownDetector.com, which tracks reports of digital services interruptions, hundreds of Citibank users had flagged issues related to their accounts as of midday.

The site indicated the interruptions had been occurring since at least 9 a.m. ET.

Some customers reported on X that they received fraud alerts and subsequently experienced long hold times with the bank’s fraud department. Others said they couldn’t access their mobile accounts.

A Citi spokesperson said the company is ‘experiencing some technical issues with Citi’s mobile app experience, which we are working quickly to resolve. For servicing needs during this time, customers can still log in at Citi.com or call the number on the back of their cards or on their monthly statement.’

Bank representatives were responding to complaints on social media earlier Wednesday afternoon, with one writing on X, ‘We are currently working on this and ask that you try calling in another 1-2 hours.’

On Wednesday morning, Citi reported financial earnings that beat analysts’ expectations, with multiple business segments posting record revenues.

This post appeared first on NBC NEWS

Will small cap stocks finally take on a leadership role in 2025? In this video, Dave provides a thorough technical analysis discussion of the Russell 2000 ETF (IWM) and how that compares to the current technical configuration of the S&P 500 index. He also shares three charts he’ll be watching in the coming weeks to determine whether small caps are more likely to outperform their large cap counterparts.

This video originally premiered on January 14, 2025. Watch on StockCharts’ dedicated David Keller page!

Previously recorded videos from Dave are available at this link.

India on Thursday became the fourth country to successfully achieve an unmanned docking in space, a feat seen as pivotal for future missions as New Delhi cements its place as a global space power.

The United States, Russia and China are the only other countries to have developed and tested the docking capability.

“Spacecraft docking successfully completed! A historic moment,” the Indian Space Research Organization (ISRO) said on X.

The Indian space agency’s mission, called the Space Docking Experiment (SpaDex), involved deploying two small spacecraft, weighing about 220 kilograms each, into low-earth orbit. The two spacecraft, called Target and Chaser, blasted off from the Satish Dhawan Space Center in southern Andhra Pradesh state on December 30 aboard an Indian-made PSLV rocket.

On Thursday, they conducted a rendezvous before docking together.

India’s “SpaDex mission marks the beginning of a new era in space exploration, showcasing India’s technological prowess and ambition,” Minister for Space Jitendra Singh said on X at the time it launched.

In-docking technology is critical for future space endeavors, such as satellite servicing and when multiple rocket launches are required to achieve mission objectives.

Domestically developed docking technology will be crucial if India is to succeed in advancing its ambition of putting an Indian national on the moon, building a home-grown space station, and returning lunar samples, according to the ISRO.

The technology will allow India to transfer materials from one satellite or spacecraft to another, such as payloads, lunar samples or, eventually, humans in space, Singh told reporters at a press conference on December 31.

As part of the mission, the docked spacecraft will also demonstrate the transfer of electric power between them, once they are linked. This is essential for operating in-space robotics, spacecraft control, and payload operations during future missions.

Before the docking, India on Sunday conducted a “trial attempt” where the two satellites were brought progressively closer together in orbit until they reached 3 meters apart, before moving back to a “safe distance.”

The successful docking came after the experiment was twice postponed on January 7 and 9 due to technical issues, and the spacecraft drifting more than expected during a maneuver to bring them closer together.

A global space race

India’s space ambitions have accelerated under Prime Minister Narendra Modi, who was elected to a third term last June and who has tried to assert India’s place on the global stage.

In 2023, India joined an elite space club becoming the fourth country to land a spacecraft on the moon. The historic Chandrayaan-3 mission, the first to make a soft landing close to the moon’s unexplored South Pole, has collected samples that are helping scientists understand how the moon was formed and evolved over time.

As part of its ambitious plans, India aims to launch its first crewed mission to space in the next few years, and put an astronaut on the moon – a feat only ever achieved by the US – by 2040.

The country has also set its sights on building its own space station by 2035, which will be called the “Bharatiya Antariksha Station,” and launching its first orbital mission to Venus in 2028. It also plans to return moon samples as part of its ongoing lunar Chandarayaan program in 2027.

India has also made a major push to commercialize its space sector in recent years, allowing private enterprise and easing approvals for foreign investment, which has focused on building and launching small satellites into low-Earth orbit more cheaply.

For Sunday’s docking experiment, the rocket and spacecraft were integrated and tested at private company Ananth Technologies, in a first for the country.

This post appeared first on cnn.com

Meta is set to cut about 5% of its workforce, focusing on the company’s lowest-performing staffers, CNBC confirmed Tuesday.

CEO Mark Zuckerberg informed employees about the decision to “move out low performers faster” in a memo posted on the company’s internal Workplace forum on Tuesday. Zuckerberg told employees 2025 will “be an intense year.”

The company specified that it is “exiting approximately 5% of our lowest performers” in a separate message posted by a company director. Meta has more than 72,000 employees, according to its most recent quarterly report.

Meta said employees affected by the layoffs will be notified by Feb. 10 and receive severance in line with what the company has provided previously. The cuts represent Meta’s largest layoffs since it eliminated 21,000 jobs, or nearly a quarter of its workforce, in 2022 and 2023.

Bloomberg was first to report the cuts, citing an internal memo.

The move follows several major operational changes within Meta aimed at building closer ties with President-elect Donald Trump.

Last week, Zuckerberg announced Meta would end its third-party fact-checking program in favor of a “Community Notes” model used on Elon Musk’s platform X, where individual users provide more context to posts.

“The recent elections also feel like a cultural tipping point towards once again prioritizing speech, so we’re going to get back to our roots and focus on reducing mistakes, simplifying our polices and restoring free expression on our platforms,” Zuckerberg said in a video announcement.

Below is Zuckeberg’s internal memo, which CNBC obtained.

Meta is working on building some of the most important technologies of the world. AI, glasses as the next computing platform and the future of social media. This is going to be an intense year, and I want to make sure we have the best people on our teams.

I’ve decided to raise the bar on performance management and move out low performers faster. We typically manage out people who aren’t meeting expectations over the course of a year, but now we’re going to do more extensive performance-based cuts during this cycle, with the intention of back filling these roles in 2025. We won’t manage out everyone who didn’t meet expectations for the last period if we’re optimistic about their future performance, and for those we do let go, we’ll provide generous severance in line with what we provided with previous cuts.

We’ll follow up with more guidance for managers ahead of calibrations. People who are impacted will be notified on February 10 or later for those outside the U.S.

This post appeared first on NBC NEWS

In this video, Tony starts the week with a very different tone as he looks at how markets are currently playing out. He then shares individual trade ideas, pointing out which ones they continue to have a bullish or bearish outlooks on. He looks at some key stocks including META, NVDA, AAPL, and more. This segment is meant to be the foundation of all of the trade ideas that OptionsPlay sends to members throughout the week.

This video premiered on January 13, 2025.

Russia’s military on Tuesday said it would retaliate against Ukraine after Kyiv attacked Russian regions by firing six US-made ATACMS ballistic missiles, six UK-made Storm Shadow cruise missiles and launching one of the biggest drone attacks to date.

After Ukraine first launched ATACMS and British Storm Shadow missiles into Russia last year, Moscow responded on Nov. 21 by launching a new intermediate-range hypersonic ballistic missile known as “Oreshnik”, or Hazel Tree, at Ukraine.

Russia’s defence ministry said it had shot down all of the Western missiles fired by Ukraine at the Bryansk region, as well as 146 drones outside the war zone. It said two more Storm Shadows had been shot down over the Black Sea.

“The actions of the Kyiv regime, supported by its Western curators, will not go unanswered,” the defence ministry said.

The Ukrainian General Staff said it had struck as deep as 1,100 km (680 miles) inside Russia, targeting oil storage, refinery, chemical and ammunition plants in the Bryansk, Saratov, Tula and Tatarstan regions.

Kyiv did not say exactly how it struck the targets, but said that drone and missile forces were among the units involved in the attack.

Russian President Vladimir Putin said in November that the Ukraine war was escalating towards a global conflict after the United States and Britain allowed Ukraine for the first time to launch their missiles deep inside Russia.

President-elect Donald Trump has pushed for a ceasefire and negotiations to end the war quickly, leaving Washington’s long-term support for Ukraine in question.

Russia’s 2022 invasion of Ukraine has left tens of thousands of dead, displaced millions and triggered the biggest crisis in relations between Moscow and the West since the 1962 Cuban Missile Crisis.

Drone attack

The drone attack on Russia was one of the biggest to date.

Roman Busargin, governor of the Saratov region about 720 km (450 miles) southeast of Moscow, said the cities of Saratov and Engels, on opposite banks of the Volga River, had been subjected to a mass drone attack and there was damage to two industrial sites. Schools had shifted to remote learning, he said.

Ukraine attacked the same region last week and claimed to have struck an oil depot serving an airbase for Russian nuclear bomber planes, causing a huge fire that took five days to put out.

The Ukrainian General Staff said it had hit the Kristall Plant oil storage facility in Engels, part of an operation run by Ukrainian drone units and military intelligence.

The General Staff also said it had struck the Bryansk Chemical Plant, which it said produced ammunition for artillery, multiple launch rocket systems, aviation, engineering ammunition and components for cruise missiles.

The drone attack struck a munitions storage facility holding guided bombs and missiles at the Engels airbase in Russia’s Saratov region as well as other targets, a source in the Security Service of Ukraine said on Tuesday.

The General Staff said attacks on the Saratov Oil Refinery and the Kazanorgsintez plant triggered fires.

This post appeared first on cnn.com

Rashida Jones, the president of MSNBC, announced Tuesday that she is stepping down after four years of steering the cable news network.

Jones, who made history as the first Black executive to lead a major U.S. television news network, made the announcement to top MSNBC anchors, leaders and network staff on Tuesday morning. (MSNBC and NBC News are both units of NBCUniversal.)

Rebecca Kutler, the network’s senior vice president of content strategy, was named interim MSNBC president. Jones, who recruited Kutler to the network in 2022, plans to stay on in an advisory role until March.

Rebecca Kutler will be interim president of the network.MSNBC

“I came to this decision over the holidays while reflecting on our remarkable journey and the many successes we’ve achieved together as a team. This has been the most rewarding chapter of my professional career and I am immensely proud of what we have accomplished, which has been made possible only by you,” Jones said in a memo to staff.

The announcement comes nearly two months after Comcast announced a plan to spin off most of its cable TV networks into a separate publicly traded company, currently known as SpinCo. The new company will include MSNBC, CNBC, the USA Network, Oxygen, E!, SYFY and the Golf Channel.

Jones took charge of MSNBC in February 2021 after the inauguration of President Joe Biden and the Jan. 6 riots at the U.S. Capitol. She drove MSNBC to ratings triumphs on major political nights.

She retained and signed new long-term deals with the network’s top talent, including Rachel Maddow. She also created a live event series; relaunched a new mobile app and premium subscription series; and made investments in other network digital offerings.

MSNBC has seen a post-election ratings dip. The network still ended last year as the No. 2 network across cable, with 807,000 average viewers daily and 1.3 million viewers in the prime-time hours.

Rashida Jones.MSNBC

The cable television business writ large is at a crossroads as consumers move toward streaming alternatives such as Netflix and Amazon Prime Video. In this business environment, some cable channels remain profitable with healthy cash flows, but other brands have rapidly declined.

In a memo to staff, Mark Lazarus, the incoming chief executive of SpinCo, praised Jones for her years helming MSNBC.

“Rashida has expertly navigated MSNBC through a years-long, unrelenting and unprecedented news cycle, all while driving the network to record viewership and making investments in nonlinear businesses. MSNBC is well-positioned for the future,” Lazarus said in a memo to staff.

Lazarus told staff members on a network call that MSNBC will retain its name after the spin-off transaction is complete.

Jones previously served as senior vice president of NBC News and MSNBC, overseeing and leading the production of cross-network special events, including election night coverage and presidential debates.

Kutler came to MSNBC from CNN, where she spent two decades, most recently as a senior vice president.

This post appeared first on NBC NEWS

To understand what makes the Dow Jones tick, you have to first understand one of the key differences between the Dow Jones and the S&P 500 indices. There are a few, but none more critical than the following:

Index Weighting

The S&P 500 is market-cap weighted, meaning that companies with the highest market capitalization have a stronger hand in moving the S&P 500 index value. Currently, these are the companies that play the largest role in moving this benchmark index, including their weighting:

  • AAPL – 7.58%
  • NVDA – 6.59%
  • MSFT – 6.27%
  • AMZN – 4.11%
  • GOOGL – 4.02%

These are 5 of the Mag 7 stocks and they carry 28.57% of the entire weighting of the benchmark S&P 500 index. It’s easy to see how the S&P 500 can be swayed easily by the performance of just these 5 stocks.

Well, guess what? We need a cute lil name for the Top 5 price-weighted stocks in the Dow Jones, because their collective weight is 32.43% of the entire Dow Jones Industrial Average. The Dow Jones, by contrast, is a price-weighted index. The highest priced stock carries the most weight, while the lowest priced stock carries the least weight. Market capitalization plays NO role in the weighting. Want to know who the “Fabulous 5” are? Here ya go:

  • GS – 8.25%
  • UNH – 7.29%
  • MSFT – 6.07%
  • HD – 5.60%
  • CAT – 5.22%

All 5 of these stocks now trade beneath their declining 20-day EMAs and only one (MSFT) still shows a 20-day EMA above its 50-day SMA. In other words, 4 of the 5 have experienced “death crosses”, which are bearish technical developments.

Looking at the RRG

Here’s another way to look at the change that’s taken place within the Fabulous 5, just over the past 5-6 weeks. But before we do that, let’s first pull up the chart of the entire Dow Jones:

Heading into December, there was a solid uptrend on the Dow’s absolute chart and mostly sideways relative action after a very strong relative performance in July. Since early December, even late November, everything has headed south on the Dow Jones.

We can now take a look at an RRG as of early December to show how the Fab 5 were leading at that time:

This shows how each of the Fab 5 were performing relative to the benchmark S&P 500. 4 of the 5 were situated on the right side of the chart in the leading or weakening quadrants. This means they were relative leaders. Now, just a handful of weeks later, check out how these 5 stand relative to the S&P 500:

All 5 are currently residing on the left side of this chart, indicative of relative weakness, not strength. Momentum is building in the majority of the companies, so if that continues, we could begin to see relative outperformance of the Dow Jones again. For now, though, caution is the word.

One last thing. I’ve updated my Dow Jones Components ChartList and have numbered them 1 to 30, in price order, which reflects the highest-weighted to lowest-weighted stocks in the Dow Jones. I’m sorting this ChartList based on 1-month performances (SCTR scores are also reflected):

Of the 7 worst 1-month performers, 5 of them are in the Top 7 in terms of market weight. In other words, many of the worst recent performers in the Dow Jones also happen to be among the most heavily-weighted. Also, it’s important to note that many of the top-weighted Dow Jones stocks are also among the worst relative performers, as measured by SCTR scores (StockCharts Technical Rank, a form of relative strength). This combination is what has been crushing the Dow Jones. Until this changes, the Dow Jones will remain under relative pressure vs. the other major indices.

My Favorite Dow Jones Component

There are a number of ways to rank the potential of the various Dow Jones component stocks for 2025 and, obviously, it depends on your criteria. But I’ll be providing my FAVORITE Dow Jones stock (and why) for 2025 in Monday’s EB Digest, our 100% free newsletter. If you’re not already an EB Digest subscriber, and you’d like to check out my pick for 2025, please CLICK HERE and enter your name and email address. Again, it’s completely free and there’s no credit card required!

Happy trading!

Tom