Last weekend I predicted volatility … but I didn’t expect the direction to be quite what happened!
No harm done … short weeks following a holiday Monday can be a little treacherous, which is something I did more than allude to.
Now we’re back properly after the summer, this is where the real business can recommence.
The question is … Where to from here? And at this point, regardless of what you hear anywhere else, it’s simply not clear.
What do you do about it?
Keep your shape … stay true to our Trade Plan. The market – and individual stocks – will reveal the most likely direction according to our favored setups.
Market Outlook:
Last week I said “Increasing volatility is highly likely over the next few weeks. In due course, this will lead to very tradeable setups”.
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 Main Indices:
Last week I said:
“The long weekend makes things more difficult to assess, but I expect continued activity at or below the 50-dma, with increasing volatility also a factor“.
Not a bad shout if you think about it. The S&P and IWM just flipped above their 50-dma’s with increasing volatility, while the DIA and QQQ are now nailed on their 50-dma’s.
This week’s guidance is cloudy. On the one hand I can see a continuation of the past three days’ upward momentum, and on the other hand I can see a bearish waterfall setup in its middle phases.
Market Timers:
- Longer Term Market Timer (OVIsi): Red, but likely to turn amber this coming week
- Medium Term Swing Timer: Negative (marginally oversold)
- SPY OVI: Neutral, just emerging from negative (not conclusive)
Fast Filters Stock Selection:
I used more of my Fast Filters this week than I usually do. That’s how challenging it’s been to find AAA setups. I have a trimmer list to focus on, but this is one of those weeks where – in terms of high probability setups – it’s slim pickings.
APA BEKE BMY BZH CCJ CHPT DLO EBAY EFX FUTU HPE IOT IR JBHT LEN LYFT NBIX NTRA OXY PANW PDD RIVN SBUX SLB SMAR SNAP TOST URA
Software Upgrades:
Data improvements have been deployed, and there are many more application upgrades scheduled for October and November.
As of today, we are investigating an improved Market Timer indicator that looks rather encouraging. I’ll keep you informed on progress – or lack of!
Events:
I’m very excited about the Summit on 3rd December at the London Courtyard Marriott Heathrow, where I will be revealing more improvements to our method and applications, making things more precise and more efficient for all of us.
The Foundation Day will be on 26th November, by remote live stream.
Register to get in on the early bird savings
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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.
