A false breakout on Monday followed by three down days, and finally a gap up on Friday … That’s what you call challenging market conditions.
The markets
So, last week’s headline was that there was some limited upside potential but there was generally thin participation.
It’s a similar sentiment this week but with the added comment that the bearish setups do look generally tidier.
Market Outlook:
With some notable exceptions, earnings has been pretty dull – just look at the pre- and post-earnings pies in the Dashboard.
As I review at least 200 stocks, the bullish setups aren’t as attractive looking as the bearish ones. This would suggest again, limited upside.
Watch the video for more detail.
The Main Indices:
For the second week running, the SPY was saved later on in the week. The DIA and QQQ may look robust to many observers, to me I question why there’s no OVI participation. The IWM also enjoyed a recovery Friday, but I think the upside for the mid-caps is seriously limited.
Market Timers:
- Longer Term Market Timer (OVIsi): Still half-green and inching closer to a full green circle, though likely to stay half-green this week.
- Medium Term Swing Timer: Switching between positive and negative, and neither overbought nor oversold.
- SPY OVI: Still barely participating. Indeed it’s barely participating for any of the main indices. This again suggests limited upside.
Fast Filters Stock Selection:
Today I’ve looked at Post-Earnings filters as well as my other favourites. Previous weeks’ lists have done well, especially when we focused on setups near those Key Levels, and in particular those ones with Shrinking Retracements.
Here is a smaller list of stocks that look interesting for our consideration. Remember to reference the video so you know what my sentiment is on each one:
ABBV ABT ADBE APA APTV BALL BILL CAT CHD CRSP DD DG EW GMED GRMN HAS JCI JKHY LTHM MRTX MSCI NEE NEM NVCR PAGS PNR S SHOP SJM SWAV SYK URI WMS XP
Software Upgrades:
Our ambitious upgrade program focuses on algorithms, applications and design to make you a better trader.
A huge upgrade to the Watchlist area is in advanced stages of development, giving you much more control, plus a significant improvement in design to make things much easier to navigate.
As I mentioned last week, the new options Analyser and Pricer sidebar is a game-changer for anyone wanting to quickly assess any options trade.
Shrinking Retracements will be fully incorporated into the London Event (2nd December) and will also include a bearish version and Fast Filters.
By then we should also have our new charts, which will be among the biggest game-changers we’ve ever deployed.
Soon, I’ll also talk more about the oversold and overbought indicators.
During the summer we’ll release a whole new Journal app with an inbuilt calculator for you to be in control of risk at all times. We’ll also consolidate the existing Journal functions into just one convenient place.
Then there will be the TV component so you can watch our education content or your mentors right next to the chart you’re looking at. And then the charts.
Stay in touch to discover more as we unveil best-of-breed applications!
Events:
Excellent feedback from Miami and our imminent upgrades means we can evolve our events to a more practical based approach.
The Stocks Summit in London on 2nd December will be accompanied by huge new releases, completing our transition to fintech and even better functions to help you make better, more precise trades. We’ll also do a Foundation Day online the Saturday beforehand.
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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.