More upgrades coming soon, with a chart area redesign that will bring super efficiencies moving forward, and pave the way for big updates including the much anticipated initial link to broker.
The markets …
Two weeks ago I said this: “There is upside potential, but don’t take it for granted as one twitch could spark a nasty whipsaw”.
And I followed that up with this comment last week:
“That didn’t happen last week, but now we’re somewhat extended that likelihood is much greater.
So, play each trade by its merits, be cautious with your P1 profit targets … Protect them quickly.”
Those words are resonating strongly after a patchy few days where Thursday’s sell-off bar suggests a jaded post earnings environment, notwithstanding the ongoing hype for AI related stocks.
Despite that there were also a few excellent favourable Big Money Footprint moves including FSLR this past week, which many members took full advantage of.
This week there are fewer setups of the prime quality that we favour. Remember, trading is not compulsory. It’s all about quality not quantity. This week the quality isn’t optimal, so remember to be fussy.
One interesting phenomenon this week is that bearish Shrinking Retracements are massively outnumbering bullish ones almost 4-to-1. I haven’t yet found the quantitative consequence of this – we need more data for that – but it’s noteworthy in its rarity.
See below for Market Outlook.
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https://t.me/wisetradersovi
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://members.wisetraders.com
- Click on Platform (top right)
- Click on TV within the Platform (top right)
- Choose “On Demand”
- Play
Market Outlook:
Watch the video for more detail.
Again, it’s useful to read what I’ve said previously. Here’s what I said last week:
“On the face of it, the recent index highs are under pressure, particularly with heavyweights like AAPL and the other Big Seven apart from TSLA having a strong couple of weeks.
This is where the ‘but’ comes into play. I can’t quite put a finger on it, but going by experience, after such a prolonged bullish run from October to April, some form of sideways gyration would be more ‘normal’ behavior.
As ever, we just have to play each trade by its merits, so be cautious with your P1 profit targets … Protect them quickly.
In summary, there is upside potential, but don’t take it for granted as one twitch could spark a nasty whipsaw.”
And what about now?
In the old days this might be the precursor to the old saying “Sell in May and Go Away”.
But in the context of modern connectivity it’s just a saying that rhymes. Go back 40 years, then sure, many large Wall Street participants took the summer off – in the Hamptons or wherever!
But that’s simply not the case now, so let’s not trivialize our analysis down to an outdated rhyme!
Several weeks ago I mentioned that a period of sideways churn would be likely, with recent highs and lows unlikely to be breached.
That was wrong as three of the big indices took out recent highs, but as you can see, even last week I still felt there was a “But”.
What seems likely now is for the main indices to spend some time back within that recent range again.
Our market timing is a real strength that few others possess. Being good at market timing enables you to swim WITH the tide.
The Main Indices:
The SPY and QQQ are holding up well after Thursday’s bearish monorail bar. They do look somewhat extended, and I’d rather not chase.
The DIA and IWM have pulled back, finding some support at their respective 50-dmas.
Keep sticking with our game plan of AAA setups near Key Levels.
Don’t get distracted by missed opportunities.
Market Timers:
- Longer Term Market Timer (OVIsi):
Green, but I want to verify one of the components (The Index moving average AI), which seems to have gone wild on Friday. I’ll put a note out on Monday to the Telegram groups on this. - Medium Term Swing Timer:
Retreating from overbought. - Index OVIs:
All blue apart from the IWM which is mildly faltering.
Fast Filters Stock Selection:
Again, this week I’ve focused on post-earnings setups with OVI consolidations and other Big Money Footprints, especially near Key Levels and with Shrinking Retracements. Also, I prefer where implied volatilty is low, which generally brings me better quality stocks, typically with plenty of liquidity.
Remember a chart needs to have the right qualities in order for you to consider trading it.
Pick your playbook and stick to the best quality setups that conform to it.
My playbook is OVI, near Key Levels, Shrinking Retracements, and a consolidation/sideways move. The other two Big Money Footprints are desirable but those four are essential to ME!
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. **
Software Upgrades:
More fixes and tweaks this past week and some big ones to come very soon.
You can now search for the filters with the Search Bar, and full functionality of the TradeFinders is coming very soon to this area.
After that, journaling from the charts which will pave the way for:
- A link to a broker platform from the enhanced Journal app directly from the charts to make life much easier for you.
Imagine knowing if an options trade is in line with or violates your stated risk parameters!
We’ve already built the calculator engine, it just needs to be deployed. - More indicators to choose from inside our OVI charts …
Not so much for me personally, but I know many members do like to play!
Also, the full mobile phone (portrait) optimization is in the plan for the summer, and more dynamic notifications from inside the application will follow that. Lots to do!
Many more game-changing upgrades will be made in time for the London Stocks Summit on December 7th.
Events:
Our Stocks Summit in London on 7th December will be the most practical ever, with half of the event dedicated to practical exercises and with the most bonuses ever.
Like we just did in Orlando, each session will have a practical exercise for you to complete, so you can build your confidence in finding the exact type of setup you want to focus on. Easily by the event, all your TradeFinder activities will be directly from the charts, saving you huge amounts of time.
The Options Bootcamp recordings are up now and organised into their relevant chapters for easy viewing.
Watch today’s market review inside the members area here! To the left is the Watchlist area. To the right is the TV area.
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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.
