I have quite a few OVI post-earnings setups for you this week.
Overall it is our favorite strategy, and yet it does feel a bit strange right now when you consider the idiosyncratic nature of the markets.
The big indices are reaching new highs, but we can see our Dashboard pies more red with stocks retracing downwards over the one and two month time frames. And then you look at the Russell 2000 mid caps, only to see stagnation.
What’s happening of course is that the big indices are being propelled by a relatively small number of stocks, meaning large fund diversified strategies will be under-performing.
Today I also show you a couple of random examples of how our trade plan works so well to protect your profits early.
In trading, a sustainable winning strategy combines superior odds tactics with proper risk management. That’s exactly what we do. With the backdrop of sensible market timing, our OVI Big Money Footprint setups provide measurably superior odds, and our trading plan further enhances those odds by smart placement of profit targets and stop levels.
This is why I receive lovely emails like the one this week from MaryAnn who has doubled her account in the last year.
And as I’m sure you’re aware by now, more big upgrades are coming thick and fast, while we stay true to our winning approach.
The big indices look moderately stretched but not overly so. The Medium-Term Timer is still in protracted positive territory and the OVIsi longer-term indicator is still green, meaning I’m staying with bullish setups as my main focus.
Remember, the Medium Term Market Timer has specific rules which you can see by clicking “More Info” in the Market Timer area. Its overbought/oversold levels are asymmetric, meaning they have unequal values, unlike most indicators you see. Overbought is +0.80, and oversold is -0.20. When the indicator is persistently in positive non-overbought territory we’re still bullish. The most optimal area is when it is oversold, at which point we will focus on specific bullish OVI stocks.
As per last week, the broader market is still choppy and you do want to snare your P1 (first profit targets) at a conservative level. I say it every week: don’t be over-ambitious!
Again only Trade What You See … and make sure you’re seeing at least a couple of our Big Money Footprints!
Last week we deployed gold borders around Big Money Footprint filters within the TradeFinders. This makes them easier for you to see. Most members are using my Fast Filters or adapting them to create their own in any case.
Remember, we’re aiming to combine our OVI charts, Watchlists and TradeFinder applications in a very big win for everyone by December. That should include being able to set your entry/stop/exit levels directly on the charts, AND input your personalized trade diary in an upgraded journal area. Think about how cool that will be!
This week’s market review has some further nuggets by way of post-earnings stocks, and as usual further insights in our approach.