Only 28 days until our big Summit Day where I’ll be releasing profound upgrades designed to help us be more precise and more efficient. One of these will help enormously with finding stocks in close proximity to their Key Levels, something which I advocate strongly in terms of finding the highest quality setups.
The big question is whether the upward retracement since mid-October is running out of steam already, or whether it has a bit more to go. Given Friday’s rally, even the market itself hasn’t quite decided yet.
As stated several times over the past few weeks, I still consider that the October lows will be tested, and most likely breached in due course.
The Fed meeting last week caused a shock downward reaction, but Friday afternoon’s rally was either opportunistic short-term bottom fishing or short covering. Monday and Tuesday will determine what the sentiment was.
At the very least I expect some friction at this level, being in proximity to the SPY’s and IWM’s 50-dma, and the DIA’s 200-dma.
Instinctively I think there a bit further to go before confirmation of the next downswing, but as you can see, it’s choppy out there.
One thing is for sure … any long trades must be protected almost immediately as they go into profit, with a tweak to our typical EDGE trade plan.
Market Outlook:
Over the past three weeks I said the upward retracement still had legs. It only made a new short-term high on Tuesday before faltering.
Financials and energy stocks have been excellent, but they look a bit overbought now. Tech looks weak.
I would say “friction” is the right word for this week.
Watch the video for more detail.
The Main Indices:
We’re at resistance areas with the SPY, DIA and IWM, while the QQQ looks very poorly. Any recovery is likely to be short term.
Market Timers:
- Longer Term Market Timer (OVIsi): Amber, and will likely stay amber or half-red for this coming week.
- Medium Term Swing Timer: Positive
- SPY OVI: Still neutral
Last week I said the medium term outlook continues to be volatility with a positive bias during this earnings season. For this to be the case, we’ll need a positive follow-through from Friday afternoon’s surge.
Fast Filters Stock Selection:
DD was last week’s poster-child highlight for what we do. Look for these kinds of setups where you can see:
- A clear 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.
A sub-section of today’s watchlist includes another handful of nuggets:
AIG ALK AZN BG BLDR CEG CHWY CRUS CVS CYBR CZR ETSY FTV GE HP HPQ MAR MMM MNST NUE OKE ROL RTX SBUX SCHW SF SHOP SLB SPG SRPT STT UBER WBA WFC WMB WTW WWE
Software Upgrades:
The new upgraded ‘ACE’ automated stock picker will be available for the London Stocks Summit. Remember to use discretion in accordance with the Big Money Footprints setups.
Two important new filters are being deployed for the Summit. See the video for more details.
The VIP Chart upgrade is in process and scheduled for Q1. The Trade Plan directly from the charts will be part of that!
Part of the broader charting upgrade will include an integrated news feed, trade plan directly from the charts, a TV channel, alerts, options selections directly from the charts – you’ll start seeing this very soon, with ongoing deployments into Q1.
An improved Market Timer indicator is also looking very good indeed.
Events:
The WiseTraders Summit on 3rd December 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.