This fabulous run is close to overbought

It’s been a stellar couple of weeks. We nailed market direction, and we nailed a number of stocks that went nuts.

Last week I said the current upside was likely to continue but was not unlimited.

This week there are mixed signs in terms of how long this run continues. I’ve mentioned that it was likely to be connected with earnings, and we’re now past the halfway mark for that.

So, while there are still some decent bullish setups right now, there are also many stocks that are overstretched. Therefore, as always, please do not chase!

Also, as I look at my tools for market timing, two of my favourites are suggesting we are due for a mean reversion soon.

Last week my words were: “And while it looks like there’s more upside juice in this current cycle, it’s not without some headwinds around the corner, with the timing likely to be after the next couple of weeks, or perhaps during“.

So, even more than usual, be sure to protect any upside profits quickly.

Market Outlook

In this phase I think further upside potential is not impossible, but likely to be rather limited.

Watch the video at the foot of this email for more detail.

The Main Indices

The SPY has had a great run but will soon need to rest. 

The QQQ has had a rapid run, but it too will soon need to rest.

The IWM does look overbought.

There are still another two weeks left in this earnings season, but I don’t think the current upswing will last that long.

Market Timers

  • Longer Term Market Timer (OVIsi): Amber and will likely turn half-green next week.
  • Medium Term Swing Timer: Positive and not overbought. 
  • SPY OVI: After a couple of positive weeks, it’s wobbling.

Further upside looks limited, and I expect a reversion to mean quite shortly.

Fast Filters Stock Selection

Last week saw another batch of excellent nuggets, especially the ones which had ‘Smart Leverage’! This week is less “nuggety” due to many stocks being overbought.

Here is a smaller list of stocks that look interesting for our consideration:



The OptionEasy Bootcamp on 22-23 April is only around the corner, and with all the upgrades coming, it will be our best ever. It’s at the National Hotel on South Beach Miami, and we’ll also be broadcasting live and recording it. I will be unveiling more upgrades and findings, making all of our trading more precise and more efficient.

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.

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