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Thursday’s AI-inspired jitters turned the markets from ‘untidy’ to a right old mess. The catalyst was that it turns out that AI is quite expensive to develop, even for the big boys.
In other circumstances the markets might have shrugged this off – after all it’s not a major surprise that such major technology should have deep cost implications. But with the US Presidential election just a couple of days away, and with the polls suggesting it’s on a knife-edge, some weaker hands sold off.
As for the election – my instinct is to go with the betting markets who have Trump as the more likely winner at 62% implied probability, vs. Harris at 38%.
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The Markets …
All four main indices caught the same chill on Thursday, with Friday not being a massive show of resilience.
In that respect it’s all bets off until Wednesday. As we’ve mentioned recently, the outcome of this election will have different implications for different stocks, so from Wednesday onwards – and in the post-earnings environment – there will be big opportunities in the coming months.
See below for Market Outlook.
Market Outlook:
Our market commentary continues to be outstanding. Mastering market timing enables you to swim WITH the tide at the right time.
Over the past three weeks, I’ve suggested being cautious with pre-earnings setups, and focus on our favored post-earnings setups as and when they occur. That’s certainly been sound guidance, but in a way it’s a slight shame as we do have an excellent pre-earnings strategy, which has actually performed well if you compare the Dashboard OVI pies for pre- and post earnings. These pies show almost identical proportions which shows how well OVI predicts earnings behavior.
This coming week is all about the election. For VIPs I’ll be covering its aftermath on Thursday at 2pm ET (7pm GMT).
On the face of it I imagine a Trump win will be a boost for the markets.
Watch the video for more detail.
Market Timers:
- Longer Term Market Timer (OVIsi):
Green. - Medium Term Swing Timer:
Bearish and touching oversold. - The Main Indices:
The DIA and IWM have OVIs emerging out of negative, while the SPY and QQQ OVIs are very slightly negative and neutral respectively.
Stock Selection:
Now we have our new VIP Fast Filters up and running, I’ll be making adjustments and additions to many of the Fast Filters to make them more efficient.
Today, I’ve been interested in Post-Earnings setups.
I’ve also made use of the new filter that highlights stocks within an ATR range of our Key Levels, and another filter that finds overbought issues beyond an ATR range of our Key Levels.
At the London VIP Summit we’ll go through exercises where we can use the filter combinations to highlight great setups and save time.
Pick your playbook and stick to the best quality setups that conform to it.
My playbook is OVI, near Key Levels, Shrinking Retracements, and a consolidation/sideways move. The other two Big Money Footprints are highly desirable but those four are essential to me! With my new VIP filters, I’m also now looking more at overbought and oversold issues.
Go into the ‘Expert Watchlists’ area of the platform to view my Watchlists for (a) all the stocks I cover in today’s video, and (b) a smaller list that warrant a closer look.
** The list of stocks is in the Expert Watchlists area (just click on my image to see them), so you’ll have to log in to see it. Market Timing will also go inside a login soon. Remember to reference the video commentary so you know what my sentiment is on each stock listed. **
Don’t Miss Out:
Software Upgrades:
Next up is a journal upgrade with broker token forms for Interactive Brokers. We’re looking at other brokers to integrate with as well.
Also, the new format for the TradeFinders, which will be a big visual improvement, will be ready in advance of the London VIP Summit.
Soon we’ll also deploy updated ‘How To’ video guides, and we’ve already deployed a handy ‘How To’ clickthrough guide to help you navigate the platform. We’ll also be upgrading the Fast Filters still further.
The full mobile phone (portrait) optimization is in the plan for the summer, and more dynamic notifications from inside the application will follow that. Lots to do!
Many more game-changing upgrades will be made in time for the London Stocks VIP Summit on December 7th.
Upcoming Events:
Our Stocks VIP Summit in London on 7th December will be the most practical ever, with half of the event dedicated to practical exercises and with the most bonuses ever.
On Thursday I’m holding a post-election webinar just for VIPs, where we’ll examine stocks that are poised to benefit from the election result. If you’re not yet a VIP, get in now!
Our Options VIP Bootcamp in Mayakoba will be on the 3rd and 4th of May! It’s going to be amazing! Rooming details will be available soon.
Watch today’s market review inside the members area here! To the left is the Watchlist area. To the right is the TV area.
How to Watch This Video:
The best way to watch this video so you can flip through the charts at the same time:
- Log into the members area: https://platform.wisetraders.com
- Click on TV within the Platform (top right)
- Choose “On Demand”
- Play
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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.
