Steep Bounce Triggers Likely Santa Rally

Last week’s headline was that we were “close to being oversold”, the market downtrend would likely slow down, and for us not to chase the market downwards at that time.

That was yet another excellent commentary, though the steepness and speed of this bounce were a genuine surprise. In fact by the end of Tuesday I was more inclined for a bear flag to be forming, but Wednesday and Thursday put that thought to rest.

How to Watch This Video

  1. Log into the members area: 
  2. Click on Platform (top right) 
  3. Click on TV within the Platform (top right) 
  4. Choose “On Demand” 
  5. Play

If you have multiple screens, you can pop out the video by mousing over the video itself where you’ll see a “picture-in-picture” icon, and if you only have one screen you can watch it next to the charts or maximize the video window to full screen. That’s your choice!

Again, I’m putting today’s reviewed stocks into my (Guy’s) Expert Watchlist area. That means the big list and the more condensed list.

Now for the markets …

Last week’s guidance was for a slowdown in the downtrend and we got much more than that. Such a profound bounce is now unlikely to be turn into a waterfall.

What does look more likely is for a consolidation, perhaps even a pullback (ie. a steep consolidation), and then provided there’s no bad news then a Santa rally.

That’s how quickly the markets can change, and you do need to be fluid in your approach. That means “Trade What You See” and don’t be wedded to an opinion.

** Please note these market commentaries will no longer be widely available very soon, and you will need to be in our VIP area. **

Follow this link to make sure you don’t miss out.

I’ll also say this again: we can’t always have strong convictions as to market direction. But when we do it’s going to be for solid reasons, and our EDGE trading plan will minimise any risk if we were to get it wrong.

That’s the beauty of the WiseTraders system.

Again, be super fussy and be happy to be patient. Trading mistakes often come through a lack of patience.

By now you must recognise how priceless our Market Timing is.

And that’s why I’m including our Market Timing service (OVI Markets Daily) with our Stocks Summit VIP membership. That’s a $2,364 bonus … for FREE.

Follow this link for details.

Market Outlook:

As described above, I would now expect a pause of sorts before another push up.

Watch the video for more detail.

The Main Indices:

Last week I said this:
The SPY is looking close to being oversold as it has shot past its 200-dma. The QQQ looks like it wants to rest on its 200-dma. The DIA and IWM also look oversold in the short term.

This week, the DIA, QQQ and SPY are all just above their 50-dma’s respectively, while the IWM is just below its. This suggests a pause is due after a serious 5-day surge.

Market Timers:

  • Longer Term Market Timer (OVIsi):
  • Medium Term Swing Timer:
  • Index OVIs:
    Only the DIA’s OVI has moved into the blue territory, while the other indices OVIs are neutral. Given how quickly the market moved, that’s not altogether a surprise.

Fast Filters Stock Selection:

The scarcity of nuggets continues, but we have highlighted some solid setups every week. If this recent upward move consolidates, then we could be in for an excellent post-earnings period.

Of all the Big Money Footprints, the three most important are OVI, Shrinking Retracements, and Key Levels. The others are also very helpful, but those three are the ones I look for first in the VIP section.

Go into the ‘Expert Watchlists’ area of the platform to view my Watchlists for (a) all the stocks I cover in today’s video, and (b) a smaller list that warrant a closer look.

** In the next couple of weeks I will only post this in the Expert Watchlists area (just click on my image to see them), so you’ll have to log in to see it. Market Timing will also go inside a login soon. Remember to reference the video so you know what my sentiment is on each stock listed. **

Software Upgrades:

We’ll be prioritizing the new charts for our next piece of development so we can have a link to a broker platform. Even if in the first stage this is packaging up a bracket order for you, that will have a massive impact in terms of saving time.

The journal app upgrade and calculator will go after that.

Also, the full mobile phone (portrait) optimization is on the docket. Lots to do!

Many more game-changing upgrades will be made in time for the London Stocks Summit on December 2nd

Stay in touch to discover more as we unveil best-of-breed applications!


Our Stocks Summit in London on 2nd December will be the most practical ever, and with the most bonuses ever.

Each session will have a practical exercise for you to complete, so you can build your confidence in finding the exact type of setup you want to focus on. These practicals will include Market Timing and specific stock strategies, and will only take 15-minutes for you to complete. This will give you the confidence to use our tools to their maximum potential while saving you huge amounts of time.

We’ll have the Foundation Day online the Saturday before the big event so we can focus on more of these practicals during the event.

Watch today’s market review inside the members area here! To the left is the Watchlist area. To the right is the TV area.

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.

PS. If you’re interested in any of our OVI trading services for stocks or options such as a fast-track mentorship or workshop event, book yourself an appointment here to speak with us. Many of our members aren’t aware of all the services we offer to help you become a more ‘informed’ and confident trader with the OVI. Remember, everyone is an individual, and we ensure that we can cater to you and your particular needs.

Follow Us On

Related Posts