The big three indices keep powering upwards, but at the same time we can also see many mid-cap stocks now retracing back toward their recently-broken key levels.
Again, I cannot emphasize enough how important our trading plan is, especially the Entry part and the P1 (first profit target) part. If you get those two steps right your trading experience will be a positive and fruitful one.
Unfortunately the market has been swamped by many young and naive traders who have introduced silly and damaging phrases such as:
HODL – hold on for dear life
and “To the Moon” … etc.
In a couple of standout cases (GME and AMC) they were able to drive extraordinary price reactions, acting almost as a highly focused and targeted force. And even that was somewhat short-lived requiring elements of luck in timing as both of those stocks have also suffered severe downdrafts as well.
But for the vast majority of cases the “HODL” and “To the Moon” approaches are catastrophic in terms of results now and in the future. HODL and “To the Moon” are not trading plans. They are nonsense … unless you got very lucky at the beginning of course! Ultimately that approach will cause people to lose heavily.
You see it with some biotech stocks too.
The key is this …
Regardless of whether you think you’re onto a 10-bagger, you must still deploy proper risk management. In particular this means protecting your profits, and also using proper stops if things go wrong.
You can always get back in, but there is no merit in taking a 50-80% loss … ever!
Ok, rant over!
In terms of market conditions, it does still remain challenging overall, but the large caps are currently ruling the roost.
Market Outlook
Like the last few weeks, large cap tech stocks had another good week as did other large caps.
There are slightly fewer plum setups forming this week, but I’ve highlighted a few for you, and saved them in the “Latest Review Stocks” watchlist.
Software Upgrades
The rebrand to WiseTraders went very smoothly! There are a couple of bits to tidy up, but overall it all went very well with minimal interruptions!
Next up will be upgrades to the OVI Markets Daily service … Two new market timing oscillators are on the way … Medium term and shorter term. These will join the current OVI Sentiment Indicator which is a longer term market timer.
Then will be the new OptionEasy Strategy Analyzer with its new features, after which I’ll host a couple of Mastermind sessions with our Options Bootcamp members.
And then will be the focus on the big project to align our charts, watchlists and TradeFinder applications.
I’ll also be populating all of the OptionEasy TradeFinders with new FastFilters. I’ve done FlagTrader, and the others will follow soon.
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In this week’s market review, my screen suddenly went fuzzy on me, so I had to pivot to another screen. It doesn’t show on the video, but it would seem that my laptop has a rather big problem that requires a replacement very quickly!
Today I’m highlighting some more Big Money Footprint stocks setting up near Key Levels plus a few implied volatility divergence setups.
Again, stay fussy and make sure you protect your profits early.
