Hubert Senters here.

Let’s take a look at the S&P 500. We’re also going to look at the Dow so one of the things that you try to gauge a dead cat bounce and one of the good dead cat bounce is it sounds really growse, right. If you’ve ever dropped the cat from your grandmother’s house. No. It’s just a joke. I’m just kidding. A dead cat bounce as a severe sell off and then a very small bounce that doesn’t bounce very much because a dead cat doesn’t bounce much. It just goes thud.

So one of the things that you need to look out for a dead cat bounce to see if it got lit, if it’s got lakes or if it’s just a dead cat is how much it’s actually retracing so I’m going to use the Dow. And you see it 700 points sell off yesterday. If it retraces less than a $25 to 30 percent retracement it’s a dead cat bounce. If it retraces more than that and then you get follow-up throughout the subsequent days then it’s not a dead cat bounce.

It’s actually going to try to work its way up the hole. So when we look at this we’re just going to use Fibonacci so I’m going to change it to a 60 minute chart. It will kind of show us a little bit better type action. So this was yesterday’s price action right here. So we’re going to take a Fibonacci. We’re going to draw from yesterday’s high down to yesterday’s lows and then you can see here we’ve retraced already above a 61 percent retracement so far and the market still got about an hour to trade.

So this has got potential legs so it’s a dead cat that has physically stained it up and starting to walk. So that’s a good thing. Now, if we have follow through on Wednesday, Thursday and Friday of continuing retracement in other words more up move than you know that the sell off yesterday was just a little bit of a panic, a little bit of a fear and we’ll work our way gradually higher.

Now, if we get the follow-up to the downside, you know, that the dead cat well, stood up start to walk off and then eventually just collapse and that. Now, for all of you cat lovers out here this is just an analogy that we believe. Talk about four bounces and sell off so no hate mail into the sporting. So let’s take a look at what’s coming up in the next several days. We’ve got Mark Helweg. I’m sorry. I got my webinars crossed up here. I’m sorry.

Ron, now if you’ve never listened to Ron give a webinar he’s got the sexiest voice. Whatever Ron is talking about. I want to buy every time it’s like he has a hypnotic voice so they’ve got this cool little software that you can put it in and it’ll show you the seasonal patterns for your stock. They’ll tell you whether to buy or sell. And intellectually, I think I got a screenshot.

So in this example, you can see this is Apple and they’re saying Apple’s sale and then they have little bit of commentary down here that you can read. And then if you want to look at the seasonal you can say seasonal for Apple looks like this. So it’s saying right here over time it should go up through July, October, January so right now, it’s a sale right here so there’s the price action it’s going to go lower and then bottom out and then rise a little bit higher. It’s cool little software.

I’m going to HYPERLINK you to the registration page Wednesday, May 22nd at 7PM and come and listen to Ron do his webinar presentation. Every time I listen to him talk I’m like dude you’re just hypnotizing me with your voice. But he’s a really nice guy. I’ve had dinner and lunch and drinks with him and it’s a cool piece of software. I’m going to HYPERLINK you to the form.

Good luck. Hope it helps. And I’ll see you on the next video.