When you look at Apple you see the dilemma we’ve been encountering with many stocks over the past few months.
A seemingly no-brainer breakout, backed up by positive fundamentals, but which then pulls back to create a false breakout.
Of course this isn’t playing out everywhere, but more than we’d typically expect, and more than we’d ever want!
I’ve been mentioning over the past week or two about the three big components of successful trading that we already infuse into our automated institutional models:
- Market timing
- Stock selection
- Trade plan
Our work in the institutional world alerts us to how we can also make improvements to the guided discretionary trading world, and it has fueled many of the big advantages you enjoy with the OVI and our tools.
Well, this is going to inspire more upgrades that are in the latter stages of development.
Principally the Market Timing component, which up till now has partly been carried out by using our experience and being aware of stock behaviors like AAPL’s recently.
It’s true to say that our windfalls tend to manifest in bursts, and that will continue to be the case. The difference will be that we’ll have better Market Timing tools to establish when the trading weather is foul or fair.
On the development front, there will be tweaks to the new Stock Profile app as it settles into our system. Also Options Traders, we’ve made a breakthrough this week with the new Pricer working as intended, and behind the scenes with the Analyzer that I’ll share with you when we hold our first Masterclass.
Talking of Masterclasses, I’ll be holding a webinar on Thursday, so please keep an eye on your inbox for that invite.
In today’s Market Review you’ll see a variety of stocks ranging from the good, the bad and the ugly. There ARE opportunities out there, but the really plum ones are somewhat scarce and you do have to lean more to the cautious side of things.
That means being super fussy, and protecting your profits fast. I would even go so far as to raise your stop to near breakeven on the first day the stock closes with a decent profit. That’s quite extreme, but preservation of capital trumps profit potential in these conditions.