Happy New Year … again!
A quiet first three days of 2023 was followed by a flourish on Friday as the market took any kind of encouragement from the jobs report. Could it be a bear trap? Let’s see – don’t preempt it.
Pre-earnings begins in earnest next week, and I always feel earnings season really starts when JP Morgan announces, which will be on Friday.
At the start of today’s video, I’m going to show you some imminent improvements which we’ll deploy in the next two weeks, before the really big ones get rolled out later in Q1. I’m sure you’ll find the imminent ones super convenient, and they do pave the way for the biggies!
In terms of quant R&D we’re making excellent progress with an overbought algorithm which is great for bear call spreads. And we’ve mapped out how to tackle the elusive Shrinking Retracements filter, which could be something of a game-changer in terms of time.
In today’s OVI Market Review I’ll reference a number of stocks as usual. Most of the more obvious setups are to the bullish side, but there are hazards ahead … namely earnings and bear traps, so make sure you manage you trades very conservatively, protecting any profits, literally immediately.
As we approach earnings, there are two possibilities … Either we roar in for a while, continuing Friday’s momentum, or the recent defiance turns into a waterfall at or near the 50- or 200-dma’s.
Watch the video for more detail.
The Main Indices:
The QQQ – last time I mentioned it could find temporary support in this oversold area, and that’s what is happening. Short term upside is likely up to 50-dma and potentially a bit beyond.
The SPY was consolidating below its 50-dma, and remains there with a quiet OVI. Friday took it to the 50-dma. Any bad news sentiment will turn this into a waterfall.
The IWM is also drifting up towards its 50-dma while its OVI remains remarkably robust. If it were negative I would all over an imminent bearish thrust, but that’s not the case just now.
So, a somewhat confused picture which could be clarified literally within a couple of days. So, keep tuning in as the picture cannot always be as clear as we’d like it to be, particularly around earnings.
- Longer Term Market Timer (OVIsi): Amber, and will likely stay amber for this coming week.
- Medium Term Swing Timer: Positive and not overbought.
- SPY OVI: Slightly red.
Last week I said what looks likely is a short term breather followed by a waterfall set up. That’s still possible, but we have to wait and see.
Fast Filters Stock Selection:
This week I’ve made a number of Fast Filters to unearth the best looking charts. Big Money Footprints near Key Levels and with consolidations.
Here are a few stocks that look interesting for our consideration:
AAPL ADM ANET AOS BABA BEKE BIDU BILI CLF CRM DGII DTM DUK ICE LH NUE OLN PYPL SLF TECK TOST TWLO UNH
Just to remind, new features such as looking up options strategies directly from the charts are now in development in time for spring. A big swathe of upgrades will be released in January, starting in the next couple of weeks. Stay in touch to discover more as we unveil best-of-breed applications!
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.
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.