Hi there,
Last week I said: “Broad conditions remain sub-optimal and plum AAA Big Money Footprint setups remain thin on the ground”.
That remains the case this week. Yes, there are a couple of interesting setups, and I’m so grateful that our setup requirements help differentiate the wheat from the chaff. Not just that, but they help us discern what kind of conditions we’re in. And right now, it’s all a bit flaky.
Best approach: be patient like the lion! It will pay off handsomely.
Market Outlook
Watch the video at the foot of this email for more detail.
A sideways week for the big indices, while the IWM made a somewhat surprising move up.
Next week has another midweek holiday, with July 4th being on a Thursday, effectively meaning a 3-day week!
As I’ve said over the past few weeks, the markets look like continuing to be inconsistent and ragged until we get some insights from the upcoming earnings cycle.
Our market timing is a real strength that few others possess. Being good at market timing enables you to swim WITH the tide.
The Main Indices
The SPY and QQQ could still benefit from meaningful pullbacks to their 50-dmas but are proving to be remarkably robust.
The DIA looks like it has some upside potential, while the IWM has pulled itself into some upside contention.
Ultimately these are tricky conditions with not a lot of conviction to really sink your teeth into. Respect this and be ready with the big guns for when there’s more clarity.
Market Timers
- Longer Term Market Timer (OVIs): Green.
- Medium Term Swing Timer: Bullish.
- Index OVIs: Slightly blue apart from the QQQ which is slightly red.
Fast Filters Stock Selection
When I do next week’s review, I’ll be away from the office and very happy that our new TradeFinder from the charts app will be up and running! This will save me (and you!) so much time!
I’ll review my Fast Filter combos, but when there are many stocks in a particular Fast Filter set, I’ll apply other filter constraints one at a time to reduce the list size. And next week it’ll literally be a click to do that… without having to switch screens or open new tabs or windows! Happy days!
Like the last few weeks, there’s not much out there of real AAA quality this week. If you think otherwise, then your analysis may not be stringent enough!
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!
You can watch my full analysis in the video below.
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.
