The good news is that we once again nailed the short term market direction, and our nuggets from last week performed very well.
While there is the typical battle between ‘permabulls’ and ‘permabears’ as to whether the bottom is in or this is just a bear trap, we’ll stick to what has served us so well, time and time again.
At this point this current bullishness appears to be tied in with earnings season, as I’ve suggested several times even in the lead up to earnings.
And while it looks like there’s more upside juice in this current cycle, it’s not without some headwinds around the corner, with the timing likely to be after the next couple of weeks, or perhaps during.
As in the last few weeks, most of the stocks highlighted today will be of a bullish nature, but you should use our trade management practices to protect your profits. In these conditions, protect your profits almost immediately, and use our P2 mechanism to latch onto a trend if it manifests.
Market Outlook:
Same as last week. In the short term I still expect the recent upward momentum to continue in its rather patchy way. In terms of a subsequent retracement or down move, that is now a subject to consider very carefully.
Watch the video for more detail.
The Main Indices:
The SPY has powered beyond its 50- and 200-dma’s.
The QQQ has also now surged through its 200-dma, closing at its highest level since September.
The IWM has seen the expected upside, closing at its highest level since September.
Again, as I’ve mentioned in the last few 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.
Market Timers:
- Longer Term Market Timer (OVIsi): Amber, and will likely turn half-green next week.
- Medium Term Swing Timer: Positive and not overbought.
- SPY OVI: Slightly positive.
Further upside looks likely to continue in the short term.
Fast Filters Stock Selection:
Last week’s nuggets were pretty good! Big Money Footprints near Key Levels and with consolidations. And where possible, shrinking retracements.
This week I’ve looked at similar setups, but also where we can deploy ‘Smart Leverage’.
Here is a smaller list of stocks that look interesting for our consideration:
ABBV ADM AIZ AKAM BAH BIDU BIP BROS CARR CME CMS CNK CRWD CVNA GNRC GSK IBM INTC LYFT MCD MNST NEE NOW PFGC PM QCOM RJF SIVB SNX SOFI SPGI SPOT SQM SRPT SSYS TEAM UPST
Software Upgrades:
Last week we made some minor tidy-ups for the previous week’s deployment. There will be more to follow, and then it’s full steam ahead for the more dramatic upgrades to follow.
In terms of algo development, the formulas for short-term overbought stocks and shrinking retracements (a game-changer if ever there was one!) will be deployed in time for Miami.
Also in time for Miami you’ll see new features such as looking up options strategies directly from the charts, 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!
Events:
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.
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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.