A pretty eventful first week back with some stocks lifting off from excellent setups (CBOE, CARR, DKS, etc) and further confirmation of how solid our method is.
Many stocks continued their parabolic rises (see the financial sector) and this does make me wonder about how extended many stocks are right now. The golden rule is DON’T CHASE!! If you miss a breakout you miss a breakout. There will always be more. Keep your shape and stay IN CONTROL of your trades.
A telltale sign of potential over-extension is that my Key Levels pies are showing lowest tertile for the 200-dma and 50-dma, and highest tertile for the 20-dma. We still have to “Trade What You See”, but we can be aware of potential dangers and take appropriate actions such as setting conservative P1s.
An overnight update to the VIP TradeFinder is the new Momentum Initiator Bar formula. Please only use within the context of a Big Money Footprint trade. I’ll be speaking more about these during the coming weeks, but the simple message is that I use them to complement the Big Money Footprints strategies.
In today’s OVI Market Review there are many learning points and not that many super interesting stocks setting up as perfectly as we like. That can change within literally a couple of days. So be patient.
In advance of today’s recording, I did have a closer look at INFO and SPGI. INFO in particular looks like a cracking setup, but it is being acquired by SPGI and is therefore out of our consideration. The curious thing is that INFO does not resemble a stock that is just undergoing a buyout, but that may be due to the nature of how the new merged company will be structured. Anyway, for now I’ll leave that one alone.
This weeks’ stocks are in the Latest Review Stocks watchlist, and do be aware that I may add more.