Hi there,
So, last week I made reference to a mixed bag.
That would be more accurately described as a lopsided market, dominated by tech and AI related stocks.
Most sectors fared poorly last week, but Tech is a veritable juggernaut that has so much global scalability, it can prop up the rest.
Over the last several weeks I’ve mentioned how broad conditions haven’t been optimal and that a general untidiness was to be expected.
That’s exactly what’s happened, and today I show how so many stocks have behaved in an inconsistent fashion, accentuating why we absolutely need to prioritise super neat Big Money Footprint setups near Key Levels.
Nearly all the Tech super gainers originated from such setups, and it’s much more difficult to chase them once they’ve flown the Key Levels nest.
As with last week’s viewpoint, the IWM looks weak, and compounded that view by some truly ugly behaviour over the past five days.
You really do have to pick your battles carefully… this is a mucky battlefield of a market, with a few high-risk opportunities that could pay off big time, but within the context of a large hail of bullets to dodge.
Market Outlook
Watch the video at the foot of this email for more detail.
Last week I said the SPY and QQQ were somewhat extended but still with upside potential. That happened, and it looks like a similar picture for this week.
I also said the IWM looked weak. That happened too!
And I said the markets would continue to be inconsistent and ragged, while AI driven tech stocks remain flavour of the month. That’s also exactly what happened!
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 a pullback, both being extended from their 50-dma which is very extended from the 200-dma.
The DIA and IWM both faked upside rallies before pulling back down below their 50-dmas. The IWM looks weaker in the short term.
Market Timers
- Longer Term Market Timer (OVIs): Green.
- Medium Term Swing Timer: Bullish and not overbought.
- Index OVIs: Only the IWM has a red OVI right now.
Fast Filters Stock Selection
Like last week, not much out there of real AAA quality this week. If you think otherwise, then your analysis may not be tough 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.
