Last week’s title was “Next Leg Down Just a Matter of Time”… Well, it only took a few days didn’t it?!
That’s been the tricky part of this market. Getting direction right has been reasonably straightforward for us. It’s just been the WAY in which it’s happened that has been more difficult to pin down.
It was clear that the market was at resistance levels, and there were key OVI “pies” suggesting a reversion to mean was imminent. Our OVI Dashboard is an important part of our secret sauce, as is our Market Timers area.
The hope now is that we can get plenty of easy (neat and tidy) sideways movements below Key Levels where we can safely place bearish positions.
The only thing to bear in mind is the holiday season, where you do sometimes see a Santa rally, whatever the reason for that may be!
Overall, it looks likely that more bearishness will follow in the coming weeks.
Watch the video at the foot of this email for more detail.
The Main Indices
Three weeks ago I mentioned the DIA was looking a tad overbought, and it’s now mean-reverted back down to its 50-dma.
The QQQ is now just below its 50-dma, while its OVI is very negative.
The SPY is now below its 50-dma, but its OVI is still showing signs of life.
The IWM followed through on its weakness that I mentioned last week. A consolidation or waterfall here would be ideal.
Three weeks ago, I said it was likely that the remainder of this post-October upswing would be short-lived before the next downward retracement. Here we are!
- Longer Term Market Timer (OVIsi): Amber and will likely stay amber for this coming week.
- Medium Term Swing Timer: Negative (just in oversold territory, but not oversold in the current market context)
- SPY OVI: Blue (somehow!)
Last week I raised the question of whether there was any further upside to come… There was, just a tiny bit, and even that was very short-lived!
Fast Filters Stock Selection
This week I’ve made a number of Fast Filters to unearth the best looking charts.
Here are a few stocks that look interesting for our consideration:
AMD AOS APLS CPNG DAL DISH DNB FUTU GTLB HPQ HQY MPW MRK MU NEP PDD QCOM RBLX SMAR STLD SWAV UBER
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.