That was one of the tougher weeks in trading as many stocks retraced and whipsawed. The “one more hoorah” is looking precarious in this current upside cycle, and earnings will be the deciding factor.
Many issues do look overbought, but that can continue for a while longer. In terms of market timing, my trusted indicators that serve us so well are not giving us a steer in terms of their mean reversion prowess.
Simply put, they’re just not quite showing overbought… yet.
Watch today’s video at the bottom of this email for a full review.
The Market Outlook
We continued to get more volatility – that’s what I anticipated over the last two weeks – and while the previous week was to the upside, this past week was truly ragged. This suggests we are certainly closer to much more meaningful retracement in due course, but, there is a but… and the but is the real possibility of one further push up.
Watch the video for more detail.
The Main Indices
The S&P didn’t capitulate and is sitting on its 20-dma.
The QQQ is also on its 20-dma.
The IWM has bounced off its 200 and 50-dma’s.
The DIA bounced off its 50-dma.
Personally, I think the June highs are attainable, and the question will be for how long.
The Market Timers
Longer Term Market Timer (OVIs): Now full green, but like the last two weeks only just by a whisker. As suggested last time, this could always slide back into half-green.
Medium Term Swing Timer: Neutral.
SPY OVI: Still not convincing, and only just in positive territory for now. QQQ’s OVI is better. The DIA and IWM OVI readings are not indicative of bullishness.
The Fast Filters Stock Selection
This week I’ve again focused more towards the bullish side of things using various Big Money Filter combinations. The combination of bullish Shrinking Retracements near Key Levels with convincing OVIs continues to show its strength. Remember, we’re focusing on supply/demand inflexion points combined with low-risk entry setups.
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:
AMT BABA DOCU DTM DUOL DVN ETNB FI FIS FITB GEHC GFL GH GOOG HBAN LCID LDOS MP MTDR RIVN RJF SLB STWD SYY TRIP VLO VOYA WOLF WRK
We’ll give details soon for April’s OptionEasy Bootcamp in ORLANDO!
Next up is our Stocks Summit in London on 2nd December and this will also be accompanied by huge new releases. We’ll also do a Foundation Day online the Saturday before the big event so we can focus on more practicals during the event.
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.