On Wednesday the market tanked, and yesterday it rallied … What to do?!
It looks like the last couple of weeks’ commentaries still hold. There is a defiance within this erratic market behavior that suggests short term upside but with medium term fragility.
Most of the stocks highlighted today will be of a bullish nature, but you do have to use our trade management practices to keep hold of your profits. In these conditions, protect your profits almost immediately.
That said, there are nuggets out there, with consolidating patterns presenting lower risk opportunities.
In the short term I still expect the recent upward momentum to continue in its rather patchy way, before giving way to a meaningful downdraft.
Watch the video for more detail.
The Main Indices:
The SPY has nudged back above its 50- and 200-dma’s.
The QQQ – as mentioned in the previous two weeks, there’s more upside to come in the short term.
The IWM will likely see more upside during this earnings season before catching a cold.
As I’ve mentioned in the last couple of weekends and earlier in this note, the market is in the mood for further short-term upside, but you still need to be vigilant with your profit protection.
- Longer Term Market Timer (OVIsi): Amber.
- Medium Term Swing Timer: Positive and not overbought.
- SPY OVI: Neutral
Sounds like Groundhog Day … For a while it looked like the market would take a short term breather midweek, but it rallied. That looks likely to continue in the short term.
Fast Filters Stock Selection:
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 ARE AVB BAH BPT COIN COLD CRM CVNA GE HOG LU NEM QCOM QQQ SHOP SRPT SSYS SWKS TEAM TWLO ZTS
Last week’s deployment saw the introduction of the right hand menu in the Platform. This paves the way for more dramatic upgrades to follow, and we’ll be doing a couple of tidy-ups this week.
In terms of algo development, we’ve made excellent progress with formulas for short-term overbought stocks and shrinking retracements (a game-changer if ever there was one!).
And very soon you’ll see new features such as looking up options strategies directly from the charts in time for Miami, followed by a massive upgrade to the Journal area for stocks and options. That will be followed by an entirely new charting app in the summer. So many exciting developments that will completely transform our experience.
Stay in touch to discover more as we unveil best-of-breed applications!
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.
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.