Greetings from the mainland of Greece!
The SPY, QQQ and DIA are technically overbought while the IWM is lagging as it often does in bullish markets. This gives us interesting opportunities.
That doesn’t mean the big indices can’t keep running for a while, but the chances of a pullback will increase by the day. You need to watch the signs – for example a monorail reversal bar from an overbought position is often an indication of exhaustion.
If you’re sticking to our guidance to focus on Big Money Footprint stocks that are still close to their 50-day or 200-day Key Levels, then you won’t be getting suckered into overbought issues in any case.
In the past week several of our setups made good progress and a number are still valid for consideration this week.
If you haven’t done so already, make sure you never miss an alert, software update or market commentary join our free Telegram channel here.
Before my Market Outlook for the week ahead, just to remind you that personalisation of our charts is on its way, so you’ll always see them according to your personal preferences. I’ve green-lit the designs so it’s just a question of scheduling the deployment.
Market Outlook:
Our market commentary continues to be outstanding. Mastering market timing enables you to swim WITH the tide at the right time.
Last week I said it was challenging to make a definitive forecast on the SPY but maintained the stance not to chase if a stock or ETF has already flown. I also mentioned that the IWM looked bullish provided the other indices didn’t collapse. This was a good shout because the IWM will often lag the other indices on the way up, which therefore makes it an attractive and easy trade in such circumstances.
Although many of our stocks did continue to rise in this shortened 4-day week, a number of them (eg. AMD) pulled back sharply, and there are still plenty out there which haven’t yet broken out and still look attractive.
So, as per last week, there are still plenty of good looking setups tight to their Key Levels and showing positive OVIs and bullish Shrinking Retracements, so that’s what we’ll focus on.
Watch the video for more detail.
Market Timers:
- Longer Term Market Timer (OVIsi):
Green. - Medium Term Swing Timer:
Bullish. - The Main Indices:
As per last week, the OVI for all the main indices is pretty much blue as of the end of the week.
Stock Selection:
Managing risk in your trade management is essential. All too often I see systems and gurus ignore it.
The WiseTraders EDGE trade plan is excellent at its primary function of controlling risk, our Big Money Footprints (BMF) setups also contribute significantly to controlling risk.
When you trade our optimal setups, you’re typically only entering positions on confirmed breakouts of consolidation-type patterns near Key Levels, with no anticipated news imminent, and with several significant and tested (BMF) indications present that suggest an enhanced probability of a conservative first profit target being hit.
That’s how we increase our win ratios, and that’s still before we even get to the specifics of the optimal exit plan.
In this way you can see our holistic approach, which is exemplified by our 3 Master Keys: Market Timing, Stock Selection, Trade Management.
This week I focused again on Big Money momentum setups that still look promising and haven’t yet taken off.
The key to consistency is to pick your playbook and stick to the best quality setups that conform to it. If the setups aren’t there, keep your powder dry for another time.
My playbook is OVI, near Key Levels, Shrinking Retracements, and a consolidation/sideways move. The other two Big Money Footprints are highly desirable but those four are essential to me! Increasingly, I’m researching the resulting impact of very short term momentum, and 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:
We’ve deployed some big updates recently, and many more game-changing upgrades will be made in time for the London Stocks Summit on December 6th.
Lined up for later this year:
- A.I. Interfaces:
If you like using A.I. applications, then you’re going to love a particular development we have in the pipeline for you, namely GPT inside our charting application! - More Automation:
This is likely to result in an overhaul of our Home Hedge Fund / OVIcopilot application, relating to Market Timing and even some stock selection.
- Journal Upgrade:
Phase 1 and 2 are both deployed, and there’s much much more to come in due course! - Personalization:
Soon you’ll be able to set your preferences for how your charts will be laid out each time you land on them. I’m personally very excited about that! - Options Enhancements:
Key improvements made to the Pricer and Analyzer, and more to be made soon. - Dynamic Earnings Calendar:
I showed this to the Options Bootcamp attendees and they want it now! - Updated ‘How To’ Video Guides.
We’ve already deployed a handy ‘How To’ click-through guide to help you navigate the platform. We’ll also be upgrading the Fast Filters still further.
More updates are on the way!
Upcoming Events:
Our Stocks VIP Summit in London is on the 6th of December! We’re going to upgrade this event, using the successes from Mayakoba as a blueprint.
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.
