We nailed the market direction (pullback) again last week, continuing our hot streak, which several AIs have scored my weekly market reviews at 9/10 over the last two years, against an industry average of 50-60%.
It’s a big part of your routine that only takes seconds if you know how. And it’s one of topics we’ll cover in Mayakoba.
Once you nail market direction, you can focus on the stock selection Master Key with more confidence and efficiency.
Jay gets it all done in 10-minutes, and in today’s Market Review I’ll outline those steps with you.
I take a little longer because I’m doing it for you as well as myself – oh the sacrifice!!
So, it’s only FIVE weeks until our Options Bootcamp in Mayakoba, Riviera Maya where you’ll be doing practical exercises with our brand new tools.
The chart annotations, instant chart load, one-click Analyzer/TradeFinder, the chart replay training tool, the trade plan on the charts, and more …
These tools are game-changers, and there’s also a new OVI algorithm in the works with the best stats we’ve ever seen, right on the point of me releasing as a new strategy. It’s taken over a year of quant research, on top of the previous 28 years I’ve been studying options data. These things take time to do properly, but they’re worth it.
The result of this? More precision, more focus, faster implementation, better results, more fun.
Be there with us – remotely or in person – and we’ll do it all together, using our latest technology, our latest algorithms and developing that sense of control.
Have a chat with us here to explore how you can benefit from our unique approach to options.
Market Outlook:
Last week I said what I expect to happen is a short term pullback, and then we’ll see how the indices react against their 200-dmas.
We got the pullback, and I expect the SPY and QQQ to edge nearer their 200-dmas.
Here’s the thing to watch for … If the IWM (Russell 2000) drops back below its March 30th bar, then we’re in for another decent drop. If it holds, then expect further bumpiness, but not a capitulation. If the IWM fails, then you’ll see the SPY and QQQ waterfall off their 200-dmas and a further -10% will be on the cards.
Why is the Russell important here? Because it’s an index of smaller cap stocks (the bottom 2/3rds of the Russell 3000) and is typically a leader in bearish markets and a follower in bullish markets. So far it’s been remarkably resilient, bouncing off its 200-dma in the last few weeks. If the market does want to weaken further, I expect the IWM to lead.
My original forecast a few months back was for a broad based 10-20% drop across the four main indices. We’ve achieved the minimum. Further weakness will test that deeper number.
As I also mentioned last week, after this bearishness is played out, there will be a bountiful recovery of the sort we like best, so it will pay handsomely to be prepared for that eventuality.
It always pays to be in touch, even if you’re not actively trading.
Our market commentary continues to be outstanding. Mastering market timing enables you to swim WITH the tide at the right time.
Watch the video for more detail.
Market Timers:
- Longer Term Market Timer (OVIsi):
Red (remember it’s slow). - Medium Term Swing Timer:
Bearish, but pointing upwards having been oversold. - The Main Indices OVIs:
All indices are neutral to slightly negative.
Stock Selection:
The instant chart loading continues to be a blessing … The pattern annotations on the charts were released to VIPs last week, and the chart rewind functions will be released to Bootcamp attendees very soon. You can already see how they’re making a big difference.
I’ve found some interesting bounceback setups this week after a positive momentum finish to the week on Thursday.
Earnings starts next week, so we’ll focus on pre and post setups from now on.
** Remember, managing risk in your trade management is as important as trading with higher probabilities. This is very much part of the WiseTraders method, and is our third Master Key. **
Look in our Gift area inside the Platform to watch “How to Cap Your Losses & Protect Your Profits“.
Increasing your probabilities with a logical proven system is an essential part of trading. But you also need a rock solid trade plan that tilts the odds further in your favour.
Our EDGE Trade Plan does exactly that, and you will find trading so much more rewarding and peaceful if you adhere to its principles.
My goto playbook is OVI, near Key Levels, Trend Fades, and a consolidation/sideways move. The other two Big Money Footprints are highly desirable but those four are essential to me! With my new VIP filters, I’m also now looking more at overbought and oversold issues.
Go into the ‘Expert Watchlists’ area of the platform to view my Watchlists for (a) all the stocks I cover in today’s video, and (b) a smaller list that warrant a closer look.
** The list of stocks is in the Expert Watchlists area (just click on my image to see them), so you’ll have to log in to see it. Market Timing will also go inside a login soon. Remember to reference the video commentary so you know what my sentiment is on each stock listed. **
Don’t Miss Out:
Software Upgrades:
More game-changing upgrades will be made in time for the Mayakoba Options Bootcamp on 9-10 May.
Lined up for later this year:
- Chart Replay:
Go back in time and replay a chart setup to see how you would play it. A training game-changer.
- Annotations on the Charts:
View the Big Money Footprints displayed on the charts! Instant clarity, especially for Trend Fades.
- Instant Chart Data:
We’re reaping the benefits of this … a game-changer!
- Market Timing:
A significant upgrade to our Market Timing and Dashboard area is in the works. Stay tuned for any announcements.
- OVI Upgrades:
Two huge upgrades are coming for the OVI!
First is a mechanism to increase the number of stocks and ETFs to be more readable.
Second is a new research project that dramatically reduces our universe (so saving time) while increasing the probability of a profitable move.
Both of these are game-changers.
- Options Enhancements:
The Analyzer upgrade is also deployed. Anyone can now trade options with complete visibility in just a click.
- More Automation:
All these enhancements are paving the way to more automation, and accelerated use of A.I. while avoiding the pitfalls of overfitting.
The result will be more precision and less time.
More updates are on the way!
Upcoming Events:
Our Options Bootcamp in Mayakoba, Riviera May, Mexico is on May 9-10th! It’s going to be super practical, using all the new enhancements to be released especially for the event. Don’t think you can do options? I’ll prove you wrong!
Watch today’s market review inside the members area here! To the left is the Watchlist area. To the right is the TV area.
How to Watch This Video:
The best way to watch this video so you can flip through the charts at the same time:
- Log into the members area: https://platform.wisetraders.com
- Click on TV within the Platform (top right)
- Choose “On Demand”
- Play
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Remember, you can play the video at 1.25x or 1.5x speed if you want to save time! I have placed all the stocks covered in today’s review in your “Latest Preview” watch list.
