So, I’ve been predicting volatility … and we’ve got volatility !
Last weekend it was something of a surprise that the volatility had sent the markets upwards the previous week, but I maintained volatility would continue.
This past week we got volatility right and our instinct for direction right, following the inflation report.
Now, the reasons behind the volatility aren’t always that important. What is important is that the market was signalling – to me at least – that volatility was imminent and likely to continue.
In turn this would mean challenging trading conditions, which we got.
Market Outlook:
For the last two weeks I’ve maintained that “Increasing volatility is highly likely over the next few weeks. In due course, this will lead to very tradeable setups”.
And as per last week the same applies: “I believe this remains the correct guidance. Stay the course, be patient … we typically get it right, and that’s because my method has no confirmation bias. We play the odds when the odds look favorable“.
The big number for the SPY is 374 or thereabouts. If we slide through that, then the likelihood is hitting or even breaking down through the June lows. We really are at a critical juncture, and I do expect to – at the very least – get near to that 374 level.
The Main Indices:
Two weeks ago I said:
“… I expect continued activity at or below the 50-dma, with increasing volatility also a factor“.
Last week I mentioned I could see two outcomes … either a continuation of the previous three days upward momentum, or a bearish waterfall.
We got the bearish waterfall, and now the main indices are well below their 50-dmas.
Market Timers:
- Longer Term Market Timer (OVIsi): Red, and likely to stay red for this coming week.
- Medium Term Swing Timer: Negative (oversold)
- SPY OVI: Negative
The interpretation of this is that we’re likely to pause for breath in the next few days.
Fast Filters Stock Selection:
Definitely a challenge to find AAA setups this week but here is a sub-list to keep your eye on:
ARKK AVYA BMBL CDAY CHWY COST CPRI DKNG DLO DOCS F FITB FND GFS KBH LMT MCD MCHP MNST MOS NET NTES PLAY RIVN SBUX
Software Upgrades:
The next big wave of upgrades is scheduled for October and November. Summit VIP members will be getting a very important additional filter, which I’ll talk about over the coming weeks.
We’re also investigating an improved Market Timer indicator that looks rather encouraging. I’ll keep you informed on progress – or lack of!
Events:
The WiseTraders Summit is going to be another breakthrough event on 3rd December at the London Courtyard Marriott Heathrow. I will be revealing more upgrades and findings, making your trading more precise and more efficient.
The Foundation Day will be on 26th November, by remote live stream.
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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.
