A false breakout on Monday followed by three down days and finally a gap up on Friday… That’s what you call challenging market conditions.
So, last week’s headline was that there was some limited upside potential but there was generally thin participation.
It’s a similar sentiment this week but with the added comment that the bearish setups do look generally tidier.
With some notable exceptions, the earnings period has been pretty dull – just look at the pre and post-earnings pies in the Dashboard.
As I review at least 200 stocks, the bullish setups aren’t as attractive looking as the bearish ones. This would suggest again, limited upside.
Watch the video at the foot of this email for more detail.
The Main Indices
For the second week running, the SPY was saved later in the week. The DIA and QQQ may look robust to many observers but to me I question why there’s no OVI participation. The IWM also enjoyed a recovery Friday, but I think the upside for the mid-caps is seriously limited.
- Longer Term Market Timer (OVIsi): Still half-green and inching closer to a full green circle, though likely to stay half-green this week.
- Medium Term Swing Timer: Switching between positive and negative, and neither overbought nor oversold.
- SPY OVI: Still barely participating. Indeed, it’s barely participating for any of the main indices. This again suggests limited upside.
Fast Filters Stock Selection
Today I’ve looked at post-earnings filters as well as my other favourites. Previous weeks’ lists have done well, especially when we focused on setups near those Key Levels, and in particular those ones with shrinking retracements.
Here is a smaller list of stocks that look interesting for our consideration. Remember to reference the video so you know what my sentiment is on each one:
ABBV ABT ADBE APA APTV BALL BILL CAT CHD CRSP DD DG EW GMED GRMN HAS JCI JKHY LTHM MRTX MSCI NEE NEM NVCR PAGS PNR S SHOP SJM SWAV SYK URI WMS XP
Excellent feedback from Miami and our imminent upgrades mean we can evolve our events to a more practical based approach.
The Stocks Summit in London on 2nd December will be accompanied by huge new releases, completing our transition to fintech and even better functions to help you make better, more precise trades. We’ll also do a Foundation Day online the Saturday beforehand.
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.