Last week I mentioned that the markets would get easier again in due course. We’re not quite there yet, but there is still a bit more juice in this upmove that started in October … It certainly isn’t the prettiest though!
As ever, we always have to assess what we’re actually seeing and eliminate any confirmation bias. This is how I’ve been able to be on point with my market commentaries, purely using my OVI-based tools.
It’s now just 14 days until our big Summit Strategies Day. Only this morning I’ve been creating new Fast Filters to help you make the most of setups just as they’re forming around Key Levels in just a single click. I’ll start to release them next week, in time for our Foundation Training Day, and you’ll see plenty of examples of stocks found by them today.
In today’s market review you’ll also see how I determine market direction in just a few minutes, and the stocks that are forming setups around important price levels.
If you focus on these, you’ll dramatically save time, you’ll be able to specialize on the setup while also being open to explore different ways of exploiting it with stocks or options, and also managing risk better.
Again, in just a few short minutes you’ll see the benefit of our excellent Market Timing and Stock Selection process that itself only takes a few minutes.
So, just to recap, the current upswing since mid-October is being accompanied by a combination of greater volatility, mixed participation and likely near-term exhaustion, so I do expect this up move to take a breather soon – but it does look like there’s a bit more juice first.
What comes afterwards is the big giveaway. The next move down may well be the final one before this market finds its feet again and becomes more technical and therefore EASIER to trade.
So you do need to keep in touch with the markets because you can only win if you’re actively observing and ready to act.
Remember, be the lion … not the headless chicken! The lion is in a position to watch and only pounce in optimal conditions. This is the way of the successful trader.
Market Outlook:
As with last week, I believe there’s still more juice in this up-move, but there is resistance for the S&P up ahead, and timing-wise this is likely to coincide with the aftermath of earnings. Earnings season is now over, and we’re now in the beginning of that aftermath.
Same again as last week, the following move down will likely be the final one before the market starts a broader recovery.
Watch the video for more detail.
The Main Indices:
The DIA is consolidating above its 200-dma.
The IWM is all over the place, gapping each day for the past seven trading days … that tells you something!
The QQQ is consolidating above its 50-dma with no OVI participation,
and the SPY is chopping around just below its 200-dma.
As per the last two weeks, it’s likely that the remainder of this up-swing will be short-lived before the next downward retracement.
Market Timers:
- Longer Term Market Timer (OVIsi): Amber, and will likely stay amber for this coming week.
- Medium Term Swing Timer: Positive (not overbought)
- SPY OVI: Blue
Short term I still expect some upside for the S&P, but equally I expect it to be short-lived.
Fast Filters Stock Selection:
A choppier week resulting in plenty of sideways moves and consolidations. The question is whether they are high quality or not. Remember the optimal setup includes:
- OVI bias
- Recent cross of a Key Level
- A consolidation or sideways movement
- Recent shrinking retracements
The other Big Money Footprints of recent accelerating volume and price action are also important.
Last week’s sub-section watchlist had very few nuggets. This week there are more, but in these conditions you must protect any profits immediately:
AMT BRK.B CG COST COTY CPNG CSCO FDX FOXA FTS HOOD IEP IFF INTC ISRG JNPR KMB MA MOS NTAP PEAK RBLX SON TPR TRP U VZ WOLF
Software Upgrades:
The new upgraded ‘ACE’ automated stock picker is now available for the London Stocks Summit. Remember to use discretion in accordance with the Big Money Footprints setups. I’m also deploying new Fast Filters in the Summit VIP area.
Two more important new TradeFinder filters have been deployed for the Summit.
The VIP Chart upgrade is in process and scheduled for Q1. Deploying your Trade Plan directly from the charts will be part of that!
Part of the broader charting upgrade includes an integrated news feed, and will ultimately include trade plan directly from the charts, a TV channel, alerts, options selections directly from the charts – you’ll start seeing this soon, with ongoing deployments into Q1.
An improved Market Timer indicator is also looking promising.
Events:
The Manuals are ready – and by now you know how much care we put into these! The WiseTraders Summit on 3rd December is almost here and will be our best ever. It’s at the London Courtyard Marriott Heathrow, 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.
The Foundation Day gets everyone on the same page regardless of your current experience, and will be held on 26th November, by remote live stream.
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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.