Last week I said be patient for the right Post-earnings setups to manifest.
While Pre-earnings is super exciting, such trades need to be handled with small amounts and with a thorough understanding of risk.
In recent cases like RDDT and NCLH you’d have done well. But there will be rough ones out there too – like AMZN, which was already overbought and for those already holding profits there, a sensible hedging strategy would have considerably mitigated that gap down.
The more sustainable strategy – and our favorite – is Post-earnings.
When the news is already out and you can see which way the wind is blowing with reduced risk of a further news shock.
Taking advantage of the post-earnings drift phenomenon, and then increasing your odds with an optimal trade plan.
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Market Outlook:
Our market commentary continues to be outstanding. Mastering market timing enables you to swim WITH the tide at the right time.
On Tuesday we had the sort of bar that gets me tightening stops. The S&P was already overbought but we had an open-high, close-low bar. On Thursday we had the same but with a much wider range. From an overbought position, this is a risk-off or reversal bar.
From the perspective of last weekend (ie. before Tuesday!), while we expected earnings to continue in a positive fashion, I also said:
… there aren’t a huge number of optimal setups. Optimal being obvious Big Money Footprints, especially including OVI, Shrinking Retracements, and consolidations very close to Key Levels.
… Here’s where you just need to be patient for an optimal setup with your risk well-defined and low.
As with the last three weeks’ theme, let’s still keep away from technically extended issues … We’ll continue to focus on breakout potentials near our favored Key Levels, with a particular leaning towards Post-Earnings setups.
… while further upside is more likely, reward/risk is not as optimal due to the slight overextended nature of the main indices and many of the constituents of those indices.
If you’ve been patient you’re largely unscathed by the last couple of days.
This pullback is ultimately a good thing for us as it will drag good stocks back into much more optimal levels for our particular style.
With the exception of a couple of interesting setups I’m happy for this week to be risk-off. We’re in Post-earnings, and better setups will come.
Be the LION, not the headless chicken.
Watch the video for more detail.
Market Timers:
- Longer Term Market Timer (OVIsi):
Green. - Medium Term Swing Timer:
Bearish (just). - The Main Indices:
All red OVIs apart from the SPY which is still blue.
Stock Selection:
** 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“. **
This week I’ve run through my static watchlists and my saved Fast Filters to the tune of hundreds of stocks. There are slim pickings and the indices are currently not constructive. It’s ok to watch and be entertained by the markets this week.
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:
- Market Timing:
A significant upgrade to our Market Timing and Dashboard area is in planning. Given that this is one of our big strengths that I spend time with you on every week, it makes sense to give this a complete upgrade in line with new research that is being finalized.
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! - 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!
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.
Our Options VIP Summit in Mayakoba is on 9-10th May 2026! There are very limited spaces for the hotel rooms so click the link for details.
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.
