The market is wanting to rise in the short term as earnings season begins in earnest.
Last week I posed the question of whether this will end up being a bear trap, and suggested not to try to think too far ahead. Same applies this week.
JP Morgan announced yesterday, and good revenue numbers were accompanied by increasing provisions against expected future defaults. That means it expects increases in bad debts to follow. The market has elected to see the glass half full … for now.
In today’s OVI Market Review I’ll reference a number of stocks as we usually do. As per last week, most of the more obvious setups are to the bullish side, but still make sure you manage you trades very conservatively, protecting any profits quickly.
Market Outlook:
In the short term I expect the recent upward momentum to continue.
Watch the video for more detail.
The Main Indices:
The SPY has taken out its 50-dma and is now resting just above its 200-dma.
The QQQ – last time I mentioned its short term upside was likely a bit beyond its 50-dma. That’s happened. There’s probably more juice in that.
The IWM continues to move decisively, taking out its 50-dma and 200-dma last week.
As I mentioned earlier, the market is in the mood for further short-term upside, but you still need to be vigilant with your profit protection.
Market Timers:
- Longer Term Market Timer (OVIsi): Amber, and will likely stay amber for this coming week.
- Medium Term Swing Timer: Positive and not overbought.
- SPY OVI: Neutral
A short term breather and waterfall setup looked on for the S&P after Tuesday, but Wednesday saw a decisive move to the upside. That looks likely to continue in the short term.
Fast Filters Stock Selection:
This week I’ve made a number of Fast Filters to unearth the best looking charts … and there are a few nuggets out there. Big Money Footprints near Key Levels and with consolidations. And where possible, shrinking retracements.
Here are a few stocks that look interesting for our consideration:
ADM AMD AMZN ANET AVTR BBY BRKR BZ CCI CE CME CRM CTLT EBAY HON INTC INVH LH LW MNST MRK MS OLN PINS PLUG PYPL RCM SHOP SOFI SPGI SSYS TPR TWLO UPS UPST USO VLO VZ YUMC ZYXI
Software Upgrades:
Look out for an upgrade this week … We’re introducing a right-hand panel to the charts, which will be the catalyst for further upgrades over the coming weeks and months.
Just to remind, new features such as looking up options strategies directly from the charts are now in development in time for spring. Stay in touch to discover more as we unveil best-of-breed applications!
Events:
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.
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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.