Just eight weeks until Miami, very excited about that … And I have a special announcement to make on Thursday, so please keep an eye on your emails for that.
I hope you’re seeing the value of my market reviews … Our record is amazing.
For the last three weeks I’ve mentioned the markets being overbought and due a slip, even specifying to their 50 and 200 Key Levels … and yesterday they got there.
When professionals ask how are we’re able to be so accurate, I get them in an even bigger fluster when I say “We don’t use any macro-economic data”!
Go to any banking conference and you will be subjected to hours of macro-economic observations and what that might mean for the markets. Sometimes they’re right, sometimes they’re not.
But there are two big problems with only using macro-economic:
- Timing is still a challenge for them
- It increases the likelihood of confirmation bias.
Confirmation bias is when you have a pre-existing strong opinion or belief, and you steer any other observations to fit your bias, even if it means something completely illogical.
At WiseTraders we focus on how supply/demand movements might influence the price of shares. And we only ever ‘Trade What We See’.
And what we see is our very own, and unique view of ‘Big Money Footprints’.
By doing this, we have little to no vulnerability to confirmation bias and the damage that it can cause.
And these are the skills I want to help you with, which will also save you a ton of time!
Last week I also mentioned the quality of setups was quite poor. That’s often a sign of slipping prices to come.
Market Outlook:
Now we’ve reached those Key Levels, what next?
Overall it looks like the markets are weak, so I do not expect a strong bounce from here right now, but there is likely to be friction around these Key Levels.
One of my important indicators is slightly oversold, but can remain like that for a while. None of my other bellwether indicators are oversold right now, so it’s likely that the S&P will ultimately slip below its Key Levels.
Watch the video for more detail.
The Main Indices:
Here are my words from last week (they all did exactly what I said would happen):
The SPY showed some fighting spirit on Friday but it’s likely to hit its 50-dma before it makes a new high.
The QQQ is likely to drift to its 200-dma (and perhaps lower) before making new highs.
The IWM is showing remarkable resilience, but is likely to emulate its more illustrious index rivals.
So, what about this week?
The SPY is likely to remain weak. I don’t expect a bounce just yet, but it is right at its 50 and 200-dma Key Levels, so some friction is likely.
The QQQ is likely to make contact with its 50-dma before any talk of new highs is likely.
The IWM is a whisker away from its 50-dma, and I’d say the 200-dma is likely to also be tickled in due course.
Market Timers:
- Longer Term Market Timer (OVIsi): Still half-green and will continue this week.
- Medium Term Swing Timer: Just in the oversold zone, but a quick meaningful bounce for the S&P is unlikely.
- SPY OVI: Wobbled into deep negative territory, increasing the odds of further downside.
Sideways to lower movement with looks most likely, though not without some friction around these Key Levels.
Fast Filters Stock Selection:
Last week I mentioned that the previous two weeks had produced less “nuggety” stocks … first due to many stocks having been overbought, and second due to many still trying to find a base. My guidance to ‘not chase’ would have kept you safe, again!
This week there are only a small number of consolidations, which tells its own stories. Most of the attractive setups are bearish, and I typically like to focus on setups near their Key Levels.
Here is a smaller list of stocks that look interesting for our consideration, though several need a couple more bars to constitute a proper setup. Remember to reference the video so you know what my sentiment is on each one:
ABBV ALB ALLY ARES ARKW CEG CME COP CVX EBAY EL FLEX HQY HUBB KBH LMT MTDR MUR NFLX NOV NTES PHM SLB SPG SQM TPR UBER VIPS XOM ZM
Software Upgrades:
Make sure you enroll for my Miami Bootcamp where you’ll receive the exclusive bonus of my newest tools to make things easier and more accurate for you. These will include:
- Overbought/Oversold filters (great for credit spreads)
- Shrinking retracements filters / watchlists (ideal for your bread, butter and also plenty of jam!)
- OptionEasy Pricer at the side of the chart (will save you hours each day)
- OptionEasy Analyzer at the side of the chart (will save you days each week!)
Also, a revamped education suite is on the way so you can take better advantage of our unique content and also our quizzes!
And that’s not all … Very soon after Miami I’ll be deploying a whole new Journal app with an inbuilt calculator for you to be in control of risk at all times.
Then will be the TV component so you can watch our education content or your mentors right next to the chart you’re looking at. And then there will be wholesale upgrades to the charts too.
Stay in touch to discover more as we unveil best-of-breed applications!
Events:
The OptionEasy Bootcamp on 22-23 April is only EIGHT WEEKS away, and with all the upgrades coming, it will be our best ever. It’s at the National Hotel on South Beach Miami, and we’ll also be broadcasting live and recording it. I will be unveiling more upgrades and findings, making all of our trading more precise and more efficient.
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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.
