Friday was a tough day with Apple leading the markets downward after a setback in its federal case vs. Epic Games.
Added to that is the market’s overall nervousness that the delta variant is going to cause more disruption than feared.
What the market really could do with is a full-on wash and rinse, with a broad base of stocks slamming through their Key Levels so we can can reset and go again!
At some point that will happen, but right now what looks more likely is that the S&P will land on its 50-dma Key Level. In this extended bull run, the 50-dma has been the trampoline on which bounces have occurred for the S&P 500 and many of its leading stocks.
Of course, once everyone cottons onto this, it will fail spectacularly! Luckily for us the markets are more nuanced, and far deeper insights are required for longer term consistency.
Market Timing: While the S&P was quite extended from its 50-dma, the Medium Term Market Timer wasn’t showing over-extended, and the longer term indicator is still green.
However, we’re likely to continue retracing at least into Monday, and then we’ll see how the market reacts when it hits that level.
We are in “that time of year” where it’s a seasonally awkward time for the markets.
Worth being cautious.
Stock Selection: My focus is on OVI post-earnings setups and other setups forming around Key Levels. These also include my short squeezers and implied volatility divergence plays that are available to December Summit members who have access to the VIP TradeFinder.
Note, there have been a number of false breakouts recently, so super conservative profit targets are the order of the day.
Application: As ever, we can evaluate Market Timing in a few seconds, and we can identify higher probability Big Money Footprint stocks in a click or two. What this means is that you don’t have to chase every setup.
You can be patient for optimal market timing and optimal stock setups. I would suggest that for the more discerning, right now is not optimal, but that can change very quickly!
Market OverviewIn today’s market review, you’ll see a good selection of stocks ranging from OVI post-earnings setups to short squeezers and implied volatility divergence plays.
It’s setting up for a choppy week, so be super selective and don’t get hurt by the chaos. We can be patient for optimal conditions.
As always, only Trade What You See … and make sure you’re seeing at least a couple of our Big Money Footprints … or Smart Money Footprints!
I’ll be making an announcement about the new OptionEasy Strategy Analyzer very soon, after which we’ll have a couple of Bootcamp Masterminds! The trade journal updates are going well, and will be released well in time for the December Summit.
Remember, you can play the video at 1.25x or 1.5x speed to whizz through it faster if you like! I have place all the stocks covered in today’s review in your “Latest Preview” watch list.