Last week my Market Outlook section said this:
“Now the S&P, QQQ and IWM have hit their 50-dma, and with our excellent medium-term timer slightly extended, I’d expect a couple of days of consolidation, but with the QQQ having breached its 50-dma, and the OVIs for these three indices being negative, there is a decent chance for further lows.”
Ok, so maybe the second consolidation day (Tuesday) was marginal, but how is that for exquisite market analysis?!
Market timing is one of those elusive skills deemed like a holy grail by market sages. But we have proved to be highly effective at it, week after week. And the big advantage is that you can create safe highly leveraged options strategies around them with plenty of liquidity.
Again, it’s worth mentioning… Regardless of what you see in the news, or what you read in forums or chat rooms, try to ignore the noise, and interpret what you’re actually seeing instead.
The S&P Medium Term Timer is now firmly oversold, so I would imagine we’ll get a more solid consolidation now. Ideally the beginning of a waterfall… up to the 50-dma and then back down again… or is that too much to ask for?!
Watch the video at the foot of this email for more detail.
The Main Indices
The S&P has breached its 50-dma, and it should rest soon before deciding on its next move.
The QQQ has breached its 50-dma, and it should rest soon.
The IWM has tumbled all the way down to its 200-dma, where I expect it to find some level of support.
The DIA has slid below its 50-dma, and again, I do expect it to rest for a few bars.
- Longer Term Market Timer (OVIs): Now half-green as expected.
- Medium Term Swing Timer: Now firmly oversold meaning a short-term consolidation is even more likely than it was this time last week.
- Index OVIs: The SPY and IWM OVIs are negative to varying degrees while the QQQ OVI is starting to bounce around after two negative weeks. The DIA is neutral to bearish.
Fast Filters Stock Selection
Like the last couple of weeks, we weren’t overwhelmed with nuggets this week, but our bearish setups have done very well indeed. Again, it’s always quality over quantity.
Today I’ve looked at a number of my Fast Filters, all with a focus on the Big Money Footprints.
Here is a smaller list of stocks that look interesting for our consideration. Very soon I will only post this in our new Expert Watchlists area, so you’ll have to log in to see it. Remember to reference the video so you know what my sentiment is on each one:
ABBV ACGL ADM AMZN APA BPT COP FND JAZZ MTDR OZK PHM PLTR QQQ QRVO ROL TER VLO VRRM WM
Our Stocks Summit in London on 2nd December will be the most practical ever, and with the most bonuses ever.
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. These practicals will include Market Timing and specific stock strategies and will only take 15-minutes for you to complete. This will give you the confidence to use our tools to their maximum potential while saving you huge amounts of time.
We’ll have the Foundation Day online the Saturday before the big event so we can focus on more of these 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.