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good morning folks and welcome to stock charts today this is Bob Desmond it is the 16th of May for 58 in the a.m. let's get started with where we began yesterday Tesla TSL a this symbol we all know it it's been in the headlines and there are a lot of problems for the stock I I'm not a fundamental guy I really don't know netting that whether or not all the headlines are worthy of the weakness in the share price but I do believe that stocks tell a story they are a forward-looking mechanism and there is an all probability substance to what we're hearing in the headlines let's first begin with a conversation with the weekly chart we spoke about this yesterday that we were leaning into a serious support level and that word to break there would be problems and sure enough it broke yesterday now why is it that you see an avalanche of selling immediately following a break Ava of a support level it's because there are so many stop-loss orders stacked up right below that support level which for the most part convert into market orders when triggered markets sell orders and then you have your flush down in the share price now in all fairness we did bounce off of the lows of the day and we do have a bit of support here at the 279 23 level if that breaks we're coming all the way back down here to the lows of April let's drill down to a 4-hour chart see how we might open up today here's the break of support we bounced a little bit but we became a little bit oversold RSI is hooking up I'm not going to be the least bit surprised to see a rally and an attempt to try to recapture these support levels when you have a stock back to the weekly chart which is in a downtrend which these shares are in the probability back to the 4-hour chart the probability of a recapture is mediocre - very low and in all probability we are going to roll over and break down to new lows so I would avoid these shares and they are setting up for a short if you do not already short them on the break yesterday now immediately following stock charts today I'm going to go into a morning update with members I'll post it in the members area and we're going to do some analysis on the major averages and the stocks that we are holding and a couple that we are watching as potential Long's given the price action and the dollar in yields and in the markets yesterday I wanted to see how we would set up this morning see what the reaction was out of Asia and Europe to our trade and I thought it was better to have that information at hand to formulate a strategy as we proceed into Wednesday so members stay tuned let's blow through the pre market activity the dollar the dollar surged yesterday and in fact we put in a new week over week high we did not close there though we gave up some of our games now the fact that we closed off the highs of the day was a bit suspect with regard to the ability for the dollar to continue higher volume through the last hour of trade was fairly light and then you saw volume pick up into the close now what we're looking for here and this is not going to be good for commodities I want to get to gold in a moment there's a breakout of this bull flag formation if we get a new daily hi folks watch out for precious metals I warned about this yesterday watch out for precious metals now one thing that may help put pressure on the dollar is the Japanese yen yeah GDP data come out out of Japan yesterday and it was not good I should say overnight it was not good yet the again rallied again this is a four-hour chart we recaptured support so this may just may put a bit of pressure on the US dollar now taking a look at the Euro which we really need the Euro to strengthen up here a bit it is not looking good it is weak it's a sloppy chart by far the dollar is showing far more conviction than the euro and the yen now what is this hurting silver clubbed yesterday broke down below support limping back attempting to recapture prior support now resistance good luck if the dollar breaks out gold a significant technical breakdown yesterday on gold the 1,300 levels psychological support broke in you can see how we have limped back we are up on the morning we're off the highs of the session we're up higher only a few minutes ago and we're pulling back now no bueno this is not good yields this morning well this is the note so as we limp up higher here this is not a chart that is very bullish this is the 30-year bond price not the yield to put the price and as the bond price rises yields are pulling back and you can see we're limping up here let's go to the ten-year yeah we held support yesterday we're bouncing back a bit this morning so far this is a dead cat bounce to me we were oversold on this three standard deviation Bollinger Band if we begin to roll back over again and break down below yesterday's lows folks you got to beware of stocks speaking of stocks is leave off with the S&P 500 so as we enter it at Tuesday's trade we were in a very tight pennant formation the price of the S&P 500 fell to hold support it broke down we are now limping back we managed to I extrapolated out here the prior upper band of resistance you can see that we broke out above that support level the question is now do we consolidate and do we rally back in an attempt to recapture support this is a very precarious market I am of the opinion as go yields inversely goes the stock market so as always I'm going to pound the table beware of the well-dressed salesmen on CNBC who are going to chow earnings this past season remember the earnings are fairly good right how did the stock market perform on the news not that great and if it didn't perform all that great on the news why would it perform now with the yields moving higher and with that thought I'm going to segue now to a morning update with members again members I'm going to post this in the members area of the website if you're not currently a member sign up for the 14-day free trial offer if you watch this on youtube subscribe click that bell get notified of future videos leave a comment if you found this through stock to its twitter seeking alpha follow me there and if you watch this on the website any email address we hate spam too we'll send you out a few trade tutorials everybody have a profitable trading day beware and please do not go trading the first hour of trade unless you were stopping out of bad positions members let's get to morning update ok good morning members let's go over the daily chart of the US dollar and why the dollar matters and why the price action yesterday is somewhat suspect so here we have
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