Earnings is around the corner again, and I’m expecting this one to be quite bumpy both ways again.
Today’s market review is a lengthy one, so settle in and watch how a good number of stocks are shaping up – or not as the case may be. Right now there are ambiguous signals in the markets, which means a shortage of the super high probability setups that we like to focus on. That’s fine because we’re all about preserving our capital for those high probability setups.
Yesterday’s follow through suggests some short term upside, and then we’re into earnings, but you must absolutely follow my rules in terms of protecting your profits … right now that means literally as soon as you have a closing price in profit.
One thing that you must absolutely avoid is stock tipsters. I was asked about a particular article which has a decent sounding name, so I looked at their ‘authoritative’ view of stocks from 8th September.
In their article they highlighted ANTM, CIEN and BLOX as three ‘definite buys’ based on their strong fundamentals at the time.
However, none of them had decent technicals and none of them had an encouraging OVI. In other words, there was no demand for those stocks.
Needless to say, all three of those stocks went into a completely avoidable drawdown and are still under water.
The problem with tipsters is that it’s all about their EGO! They don’t look at supply and demand like we do. They commentate about what they think should happen based on their OPINION … and having an ‘OPINION’ is a fast way to lose in the markets.
With my methods you observe supply and demand and act accordingly, so do watch today’s video where you can view how I approach the markets. Right now is a quiet time because there aren’t many super high probability setups, and earnings is almost upon us.
… Which brings me to another point! This is the last earnings season where we’ll be super cautious, because in time for January’s earnings I will have my new OVI Earnings Play strategy ready. I’ll be talking more about that over the next few weeks.
Finally, do make sure you register and attend my OVI Review webinar on Thursday.
