Hello. My name is Bob Knight and I'm the founder, president and head trader for TurboTrading Corp. I wanted to reiterate something that I said in a video that I made back here on April 4th. I said, "Don't be shy. It's time to buy." Now, of course, we are not registered with the SEC and you should read our disclaimer.
This was the Powell-Yellen "buy the dip" where the long end of the bond market had spiked, and the interest rates had spiked and the growth stocks sold off quite sharply. Fifteen percent of this index is the Faang stocks. So they did come off. But what we saw was that the mid cap and small cap market, some of those stocks are down 40, 50, 60% -- huge pullback.
We got a bounce, same thing again, the stocks, the small and mid-caps got hammered, even though the market remained very strong here. But we did see it then break out through this high here. And this is a 12% move from where Yellen and Powell said, "buy the dip." And so I sit in here. This is not a time to be shy. This is a time to buy. We did get a nice pop from there. We got this doji candle at the top and did pull back, but today, a nice-looking reversal here, up 0.8. And we saw the long end of the bond market -- interest rates start to come off. But the reason that I'm so bullish in here, what I think the reason it's not the time to be shy, but a time to buy is what we saw today was the main ETFs we follow pulled back but held key support levels.*
Financials held the trend line, up 3.5%. Semiconductors held lateral support in the 50-day moving average. They were up 2.25%. The biotechs made a quadruple bottom, and they are not quite out of the woods yet, but this was up 7.7%. This gets up over 76. It's going to be game on for biotechs.
IWM, which is the markets that we trade mostly, is also up two and a quarter…held the trend line here, the rising channel line, big engulfing bullish bar held the 50-day moving average. The 50 and the 20 have not crossed. It's coming into apex, so it really just needs to get up to 230, but this is all looking very, very good.
Gold stocks. The long-term channel has broken and gold starting head up, which is an indicator probably that the markets are expecting inflation to come back.
So I just think it's a great time to be in the markets. One shouldn't be shy. We're trading mostly the mid cap and the small cap markets, as I said, but both the day trades. There's buoyancy in the markets now. Lots of stocks -- huge moves today. And then the swing trades as well. Stocks are starting to break out of their big declining channels and such that they're in, and…a lot of them are at the bottom of the pattern. And this is where the big money is made when you get to buy these dips like this. So again, we're not recommending anything. We don't give any advice, but our suggestion is, this is a time to buy, not a time to be shy.
*Updated in the transcript 4/22/2021