This week saw wholly expected volatile behaviour in the last serious week of this bumpy earnings season.
Friday’s action was a tug-of-war as inflation concerns were calmed, but will that be enough?
If you cast your mind back to just before earnings, it looked optimistic, but the first week set the scene with the financials taking a hit. This had me accelerating my more bearish outlook.
It’s important to not be wedded to a particular viewpoint. I commented on this in the Telegram groups. When you look at the markets through the lens of buyers vs. sellers, supply/demand, you see things more clearly and can pick a side with greater accuracy.
Be ok with being wrong with your viewpoint. The market is an expert in tripping up peoples’ views!
If you missed Thursday’s webinar, here’s the link. I went into detail about how a small account – however that meets your definition – can be a superpower. How do I know that? I’ve seen it countless times, where small accout traders were able to use extraordinary focus. The webinar shows you exactly what to focus on.
Talking of the Telegram groups, keep checking in with yours as there are regular updates, notices, and some big research and software developments that will be game-changers very soon.
Also, a reminder of our Options Bootcamp in Mayakoba, Riviera Maya, Mexico on 9-10 May, where Chloe will be attending and available to meet you whether you attend online or in-person. Meet someone who has used that superpower of focus to 18X her account having come back from the brink of disaster.
Walk in her shoes and be inspired by her experience.
When it comes to responsible options, no one does it better than us or our tools, so if that sounds interesting, have a chat with us here.
Market Outlook:
As I’ve mentioned before recently, I wouldn’t be surprised if the main indices don’t make a minimum 10% pullback in the coming weeks and months, especially now earnings has passed with little to cheer about it.
Of course, geopolitical events could disrupt that assessment, but there is typically only so much robustness a market can summon in the fact of relentless Big Money selling as evidenced by the repeated bearish monorail bars since October.
A counter theory would be that the markets have held up pretty well despite all that pressure.
True, but decent broad pullbacks tend to be preceded by volatility … Pre-shocks if you will.
This environment provides an ideal time to learn and determine what kind of trader/investor you are.
Jump into our Learning Vault or the Videos in our Gift Area of the Platform and see if our style suits you.
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):
Green. - Medium Term Swing Timer:
Bearish. - The Main Indices:
The QQQ’s OVI is unambiguously red, while the other three are pretty much neutral.
Stock Selection:
This week I looked high and low – around Key Levels, overbought, oversold, monorail bars, all the Big Money Footprints, you name it. After a week like this there’s no need to be exposed to unnecessary risk.
This is what sets apart the best traders. They know when to keep dry powder, and I think – by and large – this would be a good time to focus on the learning and observe for a couple of days. There are a couple of interesting setups, and things can change quickly, which is why we need to keep checking in. But I’m not looking for particulary busy Monday in terms of trades.
** 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:
- Instant Chart Data:
Click on a stock and the chart loads without blinking. That’ll save me hours of time each week.
- 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 almost ready. It will demonstrate anyone’s ability to 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.
