In line with my reading of the markets over the past few months, I’m hoping this current stalling action will be followed by short-term choppiness and then a decline that will complete a Shrinking Retracements third leg down in the next couple of months.
Why would I want that?
Because it would then set up the easiest trading conditions for us to take advantage of on the way back up!
This week saw the drama of BBBY doubling and then going down by more than 60% in just five days! Ironically, last week I saw it with all four Big Money Footprints on display, but it just looked a bit hairy so I ignored it. Could have been a ride!
Today, I’ve created 11 new sector ETF watch lists for you, so you can look at the SPDR Select ETF charts, and if you like the look of any of them, then you can now easily dig into their components.
Market Outlook:
From last week:
I am still confident this breakout will be the final one before the next downswing, so in the meantime we’ll focus on quality setups in either direction.
Most of the bullish setups from last week failed to break out, while a few made false breakouts. The bearish setups continue to look bearish.
Increasing volatility is highly likely over the next few weeks. In due course, this will lead to very tradeable setups.
The Main Indices:
The indices are stalling at or around their 200-dma’s. This was always a possibility, and now I would hope for a retest. We may not get that, but some short term volatility would be super helpful in terms of telegraphing the next down move as part of our broader based basing action.
Market Timers:
- Longer Term Market Timer (OVIsi): Still amber (as predicted)
- Medium Term Swing Timer: Positive (was almost overbought this week)
- SPY OVI: Positive
Fast Filters Stock Selection:
I’ve gone through most of my Fast Filters this week and here’s a smaller segment that you can focus on.
ABC ACI AMR ARW AXON BZ CCK CG CVX DXC GFS IOT KMB LMT MDLZ MTB NTES OKE OLPX PLTR ROST SWN UNP VMC XLP
Software Upgrades:
You’ll see data improvements from the final week in August. Later in the fall you’ll be able to get your newsfeed and messaging within the platform area.
Today I’ve added the sector ETF component watchlists for premium members.
The OptionEasy Analyzer is almost ready for its next upgrade.
Events:
The Stocks Summit is on 3rd December at the London Courtyard Marriott Heathrow. More details will be distributed this coming week.
I’ll be sending personal invites to previous Miami attendees to take advantage of the discount hotel rates.
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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.