Affirm Holdings (AFRM) was the standout winner this past week, gapping up 45% on Monday after announcing its deal with Amazon.
Looking back, AFRM has appeared in my weekly reviews six times since June, and each week in August, and I know a number of our fellow WiseTraders who have filled their boots. Rohan called it his “early Christmas present”!
Of course, not all Big Money Footprint picks will do what AFRM just did. But you’ll find that in the right market conditions, it is noteworthy how many do reach P1.
Indeed, sometimes I pinch myself, finding setups of simple beauty in just a few clicks, and then I remind myself that things are going to get even better very soon.
This is a wonderful time to be in our group. While the rest of the world is spreading themselves way too thin with far too many disparate ideas, we are becoming more focused and more successful, and in a fraction of the time.
And again … things are only getting better here, and even that progress is accelerating too.
Remember, everything we do is based in logic. Primarily the logic of supply & demand. That’s the ultimate source of our advantage. But it has to be relatively easy and painless to understand and find the setups. Otherwise it’s all too easy to get distracted.
Earlier this week I was asked about whether our Big Money Footprints could also be called Smart Money Footprints … and of course the answer is Yes! The idea is that the Big Money is using considerable resources in its R&D, thereby making it also the Smart Money. So, Big Money Footprints or Smart Money Footprints, they’re both the same to me!
Market Timing: The Medium and Long Term Market Timers continue to suggest bullishness, as they have done for many months. The S&P 500 is slightly extended from its key levels, so keep that in mind – a retracement will happen at some stage. However, like last week our main focus remains on non-extended bullish stocks.
Stock Selection: Our Big Money Footprints (or Smart Money Footprints !) method provides low risk setups which, when combined with our EDGE Trade Plan, enables us to pick off conservative first profit targets with high probability. Sometimes these P1s turn into windfalls (as with AFRM), sometimes they don’t. But the majority of our breakouts do reach P1.
And that’s it, along with this vital extra piece …
Application: We can evaluate Market Timing in a few seconds, and we can identify higher probability Big Money Footprint stocks in a click or two.
No dramas, no time-wasting, low risk, high probability, absolute focus and superior results.
Do you remember last week I mentioned I was going to talk about some stocks with exhibiting Big Money Footprints together with relatively high levels of short interest (which can lead to a short squeeze)?
These stocks can make for dramatic turnarounds. The potential short squeeze is one of the filter combinations in my VIP Stocks TradeFinder that is available to December Summit members.
So, did you see GDRX? A cracking potential short squeeze setup that I found for you last week … up 13% just in the last week!
Market OverviewIn today’s market review, you’ll see a good selection of stocks setting up nicely. Again, I won’t be going for extended stocks though a couple of them like CYBR did continue to rise. The difference with the ones that did continue even though slightly extended, is that they were classic OVI post-earnings gap-ups making their first consolidation. Something to bear in mind.
The 1 and 2 month trend indicators suggest bullishness.
Flags are now in large supply (unlike last week), while all key levels remain bullish with large pies
Market Timers are as described earlier.
Market Outlook
As per last week, it remains a bullish market, but still quite awkward and choppy. Other than immediate post-earnings pop stocks, I still thing it’s best to focus on stocks that haven’t deviated too far from a Key Level.
I do this in the Summit VIP TradeFinder by combining the Key Level filter with a “Touching MA” filter. The Key Level filter finds stocks that have crossed and held your selected Key Level in the last 30-days. The Touching MA filter finds stocks that have been within 0.5% of your selected Key Levels within the last 10-days.
Combining both of these filters means you will find stocks that have crossed more recently. I find this to be invaluable in my Fast Filter process!
As always, only Trade What You See … and make sure you’re seeing at least a couple of our Big Money Footprints … or Smart Money Footprints!
Software Upgrades
The new OptionEasy Strategy Analyzer is days away from a first release … at last! The journal updates will be in time for the December Summit.
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Remember, you can play the video at 1.25x or 1.5x speed to whizz through it faster if you like! I have place all the stocks covered in today’s review in your “Latest Preview” watch list.
