Once again, we’ve nailed the overall market direction and condition.
If you’re buying puts on bearish setups, the big advantage is that buying puts requires no margin.
Last week I mentioned how the QQQ, DIA and IWM had already dropped by 10%, and that the SPY would follow, which is all but has.
Market Direction sets the scene for how we then approach Stock Selection and our Trade Plan.
In this way, all of our 3 Master Keys intertwine.
It’s not that you can’t trade a bullish setup in a bearish market if the setup is a peach. But you do have to manage the trade accordingly.
Regardless of the market conditions, if you follow our principles, you will either be minorly adversely affected by the unfolding drama, unaffected entirely, or even profiting from them. Anything different, and you won’t have been following our WiseTraders protocols.
Our VIP events teach those protocols and empower you to practice them with our practical tools, that have just become a whole lot more practical! And the next one is in just 6 weeks, with our Options Bootcamp in Riviera Maya.
You’ll be using our latest technology, our latest algorithms and developing that sense of control.
Instant chart loads, one-click options filtering and analysis, chart rewind, pattern recognition annotations on the charts, trade plan and options risk profiles on the charts …
As with last week, our medium-term bearish guidance continues to pay off, either by keeping you safe or by profiting from bearish setups.
Also, our E.D.G.E. trade plan ensures you protect your profits quickly, particularly in choppy conditions.
Have a chat with us here to explore how you can benefit from our unique approach to options.
Market Outlook:
Last week I said it’ll continue being a bumpy ride, and I believe there will be more downside to come. A 10% drop from the highs has already been achieved by the IWM and I expect the SPY to follow suit.
The SPY is a hair away from us nailing it again.
What now?
The markets are oversold, but they are perfectly able to continue in that vein.
What I expect to happen is a short term pullback, and then we’ll see how the indices react against their 200-dmas. Most likely is that it’ll form resistance and a waterfall pattern will occur. But we don’t need to get ahead of ourselves. Much can happen in the meantime.
If you have bearish profitable positions, use our EDGE Trade Plan to ensure you keep your profits.
In the meantime, also use this time to amp up your learning. That’s why I’m releasing more practical educational tools like the chart rewind app and pattern recognition on the charts, so you can practice with no risk.
After this bearishness, there will be a bountiful recovery of the sort we like best, so it will pay handsomely to be prepared for that eventuality.
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):
Amber (remember it’s slow). - Medium Term Swing Timer:
Bearish, oversold (which can continue). - The Main Indices OVIs:
All indices are showing red.
Stock Selection:
I’m loving our new improvements with instant chart loading … The pattern annotations on the charts and the chart rewind functions will be released to Bootcamp attendees very soon, and you can already see how they’re making a big difference.
Last week’s focus was mixed though there were no false breakouts, which is another endorsement of our EDGE Trade Plan. I said you can be happy with dry powder right now and that too applies this week. That said, there are some decent low-risk setups presenting in both directions.
** 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.
