A grizzly Friday afternoon session provided another big red pie for “Downward Momentum” stocks, which is especially sensitive coming before the Labor Day holiday weekend.
This means an extra day for news (good or bad) to seep into the market, and on this showing investors didn’t want to hang in there.
As I mentioned last week:
The expected third leg down, which I’ve mentioned would happen many times over the past few weeks, is happening before our very eyes, and it’s not hanging about! The situation now is that this could turn out not to be an orderly retreat but an outright panic as the market adjusts to the prospect of sustained and even rising interest rates for the next 12-months and beyond.
Regardless, stay true to our preferred OVI setups and our market timing commentary, and you can rise above the crowd.
It remains uncanny how the main indices are playing out just as we have anticipated, and how nearly all of our bears from last week have slipped.
Market Outlook:
Last week I said “certainly not bullish!“, and today I say there is likely to be increased volatility from Tuesday next week.
This has echoes of what I said two weeks ago:
Increasing volatility is highly likely over the next few weeks. In due course, this will lead to very tradeable setups.
Again, that has proved to be correct.
The Main Indices:
Last week I said:
Next stop is the 50-dma, which is pretty close by, and the likelihood is that we’ll breach that too.
We did just that!
The long weekend makes things more difficult to assess, but I expect continued activity at or below the 50-dma, with increasing volatility also a factor.
Market Timers:
- Longer Term Market Timer (OVIsi): Red
- Medium Term Swing Timer: Negative (oversold, which can continue)
- SPY OVI: Negative
Fast Filters Stock Selection:
There aren’t many consolidations this week. I like consolidations primarily for the purpose of risk control. Here’s a smaller segment that you can focus on.
AAPL ARKK BMBL BMY CCJ CG CMCSA DOV DVAX EFX FUTU HIVE IOT IWM RBLX REGN ROL TTD XYL ZIP
Software Upgrades:
You’ll notice important data improvements on Tuesday, and there are many more upgrades scheduled for October and November.
The OptionEasy Analyzer upgrade is working fine, with a couple of minor bug fixes that should be made this coming week.
Events:
We’re excited about the Summit on 3rd December at the London Courtyard Marriott Heathrow.
The Foundation Day will be on 26th November, by remote live stream.
Register to get in on the early bird savings
I’m still sending personal invites to previous Miami attendees to take advantage of the discount hotel rates.
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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.
