Just a quick note today to confirm my cautious outlook for the time being. Right now the best thing to do is sit tight … things can change pretty quickly, but the art to trading is to pounce when things look favourable. Presently it’s a mixed bag, which does not confer to me the advantage I’m seeking.
There are few setups from my favourite stocks that are doing it for me. This means we have to hunt around – an easy task with my tools, but typically I do like to see some of my favourites looking interesting too.
The S&P and DOW have failed to escape their respective ranges and this has been a moribund earnings season.
The OVIsi (for the indices) has turned green for the last two days, but the OVIsi (for automated stock trades) is still ‘half-red’. This delayed reaction is not untypical as the stocks model requires further confirmation, but combined with the mixed earnings season it’s difficult to get excited at this particular minute.
I’m also cautious on the reversals just for now. SSYS has been a railroad track homerun that could have more to go, but prime new opportunities are in short supply today.
So again, it’s just one of those times where it’s best to observe. There’s a lot to be learned even during these quiet times. Ask yourself as you review the current charts in the context of the current backdrop: Is the particular chart you’re looking at a slam-dunk setup, according to my rules?. If the answer is not emphatic, then you have your answer!
As I said, things can change quickly, so I’ll be in contact again soon.