We’ve had a great run with this 2019 market and it’s almost certainly time for a rest.
Friday’s action signals a very likely meaningful retracement is on the way, but that’s not the end of the story.
First, there will be strong stocks that don’t retrace much, and they will be the ones to focus on when the market resumes its uptrend.
Second, the retracement will likely activate profitable stops, rather than be something harmful, so this is ultimately just the natural course of profit taking.
Today we can see an extraordinary number of railroad tracks forming. The only problem is that they’re not massively high quality … BUT if and when this uptrend decides to resume, I suspect we’ll see more of that setup that I love … the “retracement reversal”.
The next earnings season starts in only three weeks time too, so whatever happens we won’t need to quiet for long!
Only this week I saw one of our OVI traders show 24 winning trades in a row for 2019. If you keep your discipline and follow my rules, you can do that kind of thing too.
See you on Thursday for a very important live OVI Review where I’ll talk more about that, and the latest findings from the quants about the OVI … you definitely want to be part of that!
In the meantime here’s today’s OVI review.
