Big Announcement… Next year’s OptionEasy Bootcamp will be in… ORLANDO on 20th-21st April.
More about that in due course. For now, let’s talk about the markets!
In terms of the broad market, this week I have a question rather than an answer.
As I look to my indicators that have served us so well, I’m caught in some slight indecision. And that’s fine, because complete clarity isn’t always possible.
So… my question is this: Is there one last hoorah in this bullish phase of the market?
The reason I ask is because while I have been seeing plenty of overbought action along with some initial sell-off bars (the monorail!), I’m not seeing my mean-reversion indicators hit extremes that give us a strong predictive edge.
On the one hand that could be because this has not been a particularly broad rally, and market weakness will now start to take hold. OR it could be because we’re not quite done with this concentrated bull cycle yet.
Last week we saw the main S&P and Nasdaq indices make marginal new highs on Monday before slipping away, but it wasn’t a capitulation… at least not yet. The IWM and DIA fell precipitously, but they are different animals, and it could be argued they are very-short-term oversold as they hit Key Levels.
Longer term I’m bullish. Medium term I do expect a retracement. It’s just that pesky short term!
Last week I said: “… while some stocks are beginning to look overstretched with potential profit-taking bars, there are still a number of very attractive bullish setups forming near Key Levels.”
That’s slightly less applicable this week, but there are some… and there are also a few bearish setups that look interesting.
The most likely scenario is increased volatility.
Watch the video at the bottom of this email for more detail.
The Main Indices
The S&P is having a breather but hasn’t capitulated yet.
The QQQ has similarities to the S&P.
The IWM had a tough week as was anticipated. I would expect it to hit some friction around its 200-dma.
The DIA also looks like it could hit friction around its 50-dma.
- Longer Term Market Timer (OVIsi): Now full green, but only just by a whisker. This could always slide back into half-green.
- Medium Term Swing Timer: Bullish, having gotten very close to being overbought the week before last.
- SPY OVI: Back in negative territory. The QQQ’s OVI has wobbled to neutral along with the DIA’s and IWM’s.
Fast Filters Stock Selection
This week I’ve had to add more bearish scenarios than in recent previous weeks, so it’s a mix today.
Here is a smaller list of stocks that look interesting for our consideration, though like last week, this week there are quite a few to look at. Remember to reference the video so you know what my sentiment is on each one:
ABT AEM ALLY AMGN APP BAH BBY CHWY CTLT DAR DG DOCU FCX GH HSY JNJ KGC MDLZ MTDR NKLA OSTK RJF SKX TECH TSLA WAB WING WOLF XLV ZBH
So, next April’s Options Bootcamp will be in ORLANDO! A great resort with golf on site, family facilities, a spa, our own space, and big changes to the event with much more emphasis on practicals.
Our technology is improving so rapidly, we’re moving to a much more practical-based structure moving forward, which will make things more fun and more productive for you. The idea is for you to “learn, practice and apply” all at the same time.
Our Stocks Summit in London on 2nd December 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.