Hi there,
Two weeks ago, we turned to a more bullish stance, which has proved to be correct, though we still await the explosive movement out of these consolidations.
Market Outlook
Watch the video at the foot of this email for more detail.
This is interesting from last week because it still applies now:
“While turning to bullish I also mentioned the possibility of further raggedness… But overall bullish was correct, and there’s every reason to continue with that outlook.”
This too still applies:
“The only wrinkle is that one of our ‘mean reversion’ pies in the OVI Dashboard is signalling overbought. This is the pie that counts the number of stocks with OVI moving averages above (green) and below (red) certain thresholds. Currently this pie is at levels that have often produced reversals soon after.
“The counterweight to this is that the markets aren’t overbought at this time, and there are many decent setups around Key Levels right now. So, stick with those and be vigilant about protecting your profits early.”
Our market timing continues to be outstanding. Being good at market timing enables you to swim WITH the tide at the right time.
The Main Indices
The Dow edged up to overbought levels while the other indices have drifted sideways.
Market Timers
- Longer Term Market Timer (OVIs): Green.
- Medium Term Swing Timer: Bullish.
- Index OVIs: All blue.
Fast Filters Stock Selection
Like last week, today was easy to find excellent setups. First, I reviewed last week’s stocks that I referenced. Then I fast-filtered for my favourite setups including OVI, Key Levels and Shrinking Retracements. And finally, I went through my personal static watchlists.
Pick your playbook and stick to the best quality setups that conform to it.
My playbook 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.
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.
