First, just to say how much I and my team enjoyed our Miami Bootcamp.
Our regulars reported that it was our best yet, and I also want to thank all attendees who make it such a memorable occasion. Plans are already afoot to do it again next year.
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So, the markets have been unambiguously bearish recently, with the only potential rescuer being earnings.
Well, earnings have not come to the rescue and while the main indices are short term oversold, they still have more downside.
Whether we get some sort of crescendo and capitulation remains to be seen, but I believe it would be a good thing.
Over the past two years we have seen fintech outfits such as Robinhood behaving irresponsibly, luring naive inexperienced millennials into the markets with “free” shares and juiced up by ridiculous Reddit hysteria.
Now they are finding the truth of the markets. The consistent results are made by being aware and properly trained, not by spouting HODL, YOLO and “To the Moon” buffoonery.
Not that all that matters to us as we’ve all done just fine, but so many people have been misled over the past two years and it’s not their fault.
It’s not helped by high profile fund management entities like ARK investing like complete amateurs, doubling down on their losers with dollar cost averaging tactics that most professionals grow out of in high school.
Such a cavalier approach to risk management is astonishing, and they too have been handed their ass.
The good news is that all this demonstrates that the markets are functioning correctly. The prime beneficiaries of this will be … us!
Those who use the principles of demand & supply and respect risk via their trade plans have little to fear.
Ultimately the markets will recover, and in the meantime there will still be decent setups appearing, as we’ve already been seeing.
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Current Market Behavior:
The longer term slower market timer – my OVIsi – is still flipping around regularly, exemplifying the fine margins of current market conditions.
My medium term SPY Swing Timer is negative and oversold, while the Short Term Timer’s recent bullish arrows are invalid due to the S&P’s negative OVI.
Again, please do not simply follow the arrow signals blindly.
All the indices remain below their 200-dmas as earnings has not caused an encouraging reaction.
Market Outlook:
Short term oversold with plenty of scope for more downside.
Stock Selection:
A few nuggets today because there are a number of consolidations. As ever, my focus has been to identify the tight consolidations near Key Levels.
Application:
This week I have focused my searches on consolidations near the Key Levels.
Software Upgrades
The Analyzer is stable as demo’d in Miami, with more work to be done. More deployments will happen in the next few weeks.
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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.