Last week’s headline was “Nvidia takes a breather and the market could follow”.
That was a pretty spot-on headline as that’s exactly what happened.
It’s now increasingly likely that the market will continue to take a rest, with new recent highs being less likely.
Market Outlook
Watch the video at the foot of this email for more detail.
Energy stocks have been strong, but not weighted enough to prop up the rest of the market.
There are still many overbought stocks, which need to pause, while the number of really great quality bullish setups is low.
Energy stocks have reacted as anticipated and are likely to provide more upside after their next pause.
Last week I gave a neutral forecast pending the reaction from Nvidia’s blow off. This week I’m more confident of new highs being unlikely. If they are breached in the short term, I would be surprised if they held.
As ever, in the meantime, just trade what you see, and don’t try to pre-empt anything.
Being good at market timing enables you to swim WITH the tide. It’s a crucial skill set which we’ll include in the practical exercises at the Orlando Options Bootcamp in April.
The Main Indices
In the early phases of taking a rest.
Make sure you protect your existing profits and any new profits early.
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 (OVIs): Green.
- Medium Term Swing Timer: Heading lower almost into bearish.
- Index OVIs: SPY and QQQ wobbling into red. DIA and IWM likely to follow next week.
Fast Filters Stock Selection
As I look at the “more interesting” stocks we’ve looked at recently, they have overwhelmingly moved in the right direction.
This week I’ve focused on proximity to Key Levels with OVI and other Big Money Footprints in evidence. I also looked closely at Post Earnings setups. When you look back at the charts, you can see so many great moves originate from an initial earnings reaction.
Remember a chart needs to have the right qualities for you to consider trading it
Pick your game and stick to the best quality setups that conform to it.
My game 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!
Watch the video for this week’s full analysis.
Events
Our Options Bootcamp in Orlando on 20-21 April will be the most practical ever, with around 20 exercises and with the most bonuses ever.
Like we just did in London, 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 involve all the options strategies covered, with each one taking only a few minutes to complete. This will give you the confidence to use our options tools to their maximum potential while saving you huge amounts of time.
Video analysis
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.
