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Dangerous Conditions Especially with Earnings

So, last week’s broadcast was entitled “Whipsaws The Week Before Earnings Starts”, and we could call this week’s “Whipsaws The First Week of Earnings”!  

This was a nasty week, and if you were brave you got clobbered.  

If you were cautious, you’re probably giving yourself deserved pat on the back, and nine times out of ten my instincts are to be cautious. 

So, today’s broadcast will be deliberately light on setups for the simple reason that there have been too many false breakouts recently, and with earnings now upon us, the conditions are more suited to sitting back and waiting for a bit.  

What that means is that we still observe what’s going on because things can change quickly.  But there is no rush to hurtle into trades.  

Market Outlook

This is what I said last week: 

Last week I mentioned there were fewer plum setups forming, and that may have been a sign of the ensuing market volatility that took place on Thursday in particular.

Earnings starts next week with the financials leading the way as is the tradition. For this particular round, my instinct is to take a cautious approach, requiring a breakout from a definable consolidation and high quality OVI setup. 

That’s pretty much the playbook for this week as well, except that I’ll go one step more cautious and suggest we sit out this week!  

Software Upgrades

In today’s broadcast I’m showing you the upgrades to the OVI Markets Daily service which will be deployed for those members imminently.  Two new market timing oscillators are on the way … Medium term and shorter term.  These will join the current OVI Sentiment Indicator which is a longer term market timer.  In today’s video I’m giving more attention to the Medium term oscillator, which I think you’ll enjoy a lot!  

For our options members, the new OptionEasy Strategy Analyzer is coming along nicely with its new features which I’ll review with you  when I host a couple of Mastermind sessions with our Options Bootcamp members.

And later on this year I’ll then focus on the big project to align our charts, watchlists and TradeFinder applications.

I’ll also be populating all of the OptionEasy TradeFinders with new FastFilters. I’ve done FlagTrader, and the others will follow soon.

This week’s market review is again from sunny and hot Greece where I’ve transported my office for another week.  For the purposes of trading, all I need is a laptop, and for my research, all I need is my iPad … in my case iPad 5 Mini! 

Again, this week I think is a week more for observation.  Let’s see how more stocks are reacting to earnings and all the other news spilling out, and we can take stock next week.