Greetings from the glorious, hot and sunny Greece!
It had been a good six days for the markets up until Friday, where SNAP and TWTR sucked some, though not all of the goodwill out.
The major indices are all above their 50-dma’s, and while that may turn out to be temporary the recent action continues to support my assessment that the markets are in a phase (I believe an early one) of making a base.
Remember, this could take many months, so lets not get carried away. But as you’ll see today with a stock like VERV, which I’ve been mentioning every week since 26th June, there are stocks that lead, and VERV has doubled since that first mention.
Other stocks look like potential leaders in the making, and you just have to observe them as they complete (or don’t) the Shrinking Retracements setup that I’m anticipating for them.
In further encouraging signs for your overall trading competence are those stocks that were overbought, that we didn’t chase, and that have come back to their Key Levels.
You have skills, tools and advantages that very few traders out there have. It’s all about temperament now, and realizing that the big rush of gains tend to occur in rapid phases of frenetic market action.
During the other phases you have to be present, patient, but realize that you can still pick off more modest winners that are exhibiting our Big Money Footprints setups.
Current Market Behavior:
I still see evidence that the market is tentatively trying to start putting in a base.
The Dashboard is somewhat inconsistent right now, and that’s simply a reflection of where the market is at. There’s no point in trying to read too much more into it than that.
Earnings is understandably inconsistent. The large finance houses bouncing, while tech continues to falter.
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My Longer Term Market Timer, the OVIsi remains firmly in its red zone, which confirms my previous sentiments that earnings were likely to be a mixed bag at best.
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The Medium Term Swing Timer is in positive territory, while the Short Term Timer up-bars are still a no-go due to a still unconvincing OVI reading for the S&P.
The indices being above their 50-dma’s is positive, though not yet conclusive. New lows are still possible, but I still believe the most severe of this cycle’s downward moves has already occurred.
Market Outlook:
While I love my pre-earnings strategy, this is not the earnings cycle to use it!
Over the medium term I still expect some further choppiness while the markets base over the next few months, while the next cycle’s leaders emerge over the next few weeks. We might have unearthed a couple of those today!
Stock Selection Using Our Fast Filters:
Today, I have focused on consolidations, my static watch lists, and recent stocks we’ve been observing.
Again, while there are plenty of bearish setups, they are either very oversold, gappy or not hugely convincing, while the more bullish setups are neater (unsurprisingly) and easier to spot.
Software Upgrades
We have some very big news coming in the next couple of weeks … make sure you keep reading my regular reviews as it’s going to make a very big difference, as well as pave the way for huge upgrades in the future!
That’s on top of the many more important upgrades to follow in late summer / early fall.
Events
Next year’s Miami is confirmed for April 22-23, and as mentioned above, due to a partnership with a Latin American based outfit, the live tickets will be snapped up quickly, so we will give first dibs to our regulars!
We have the hotel links, and you should have started to receive these by now.
This year’s Stocks Summit is confirmed for 3rd December at the London Courtyart Marriott Heathrow, as per last year. More details will follow in the next couple of weeks.
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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.
