Hi there,
Something I mention over and over again is how important it is to keep in regular contact with the markets because they can change very quickly.
And indeed, they have done in the last couple of weeks, turning sharply to produce many interesting setups right now.
Last week we turned to a more bullish stance, which was correct.
Market Outlook
Watch the video at the foot of this email for more detail.
While turning to bullish I also mentioned the possibility of further raggedness, which we got on Thursday particularly with tech stocks.
But overall bullish was correct, and there’s every reason to continue with that outlook.
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 and Russell – two very different indices – powered up, while the S&P and Nasdaq also edged upwards and are now resting just above their respective 50-dma’s.
Market Timers
- Longer Term Market Timer (OVIs): Green.
- Medium Term Swing Timer: Bullish.
- Index OVIs: All blue.
Fast Filters Stock Selection
Today was easy to find excellent setups. First, I reviewed what Jay had unearthed on Thursday. Then I reviewed last week’s stocks that I referenced. And third I went through my personal static watchlist. By then I’d already found enough nuggets even before conducting my own Fast Filter combinations.
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.
