As mentioned last week, the likely scenario for this bull run is that the giant techs need to report their earnings before this market can take a proper rest.
Interestingly, they pretty much all dropped last week – perhaps in sympathy with Tesla’s earnings reaction – with only Nvidia not quite puncturing its 20-dma.
Meanwhile the major indices remain deeply overbought in terms of price, but not quite in terms of breadth. The easier signal is when both are overcooked by our way of looking at things through our OVI Dashboard pies.
Financials and energy stocks instead took the strain, along with a couple of other sectors propping up the big indices. But with six of the big seven tech giants still to report, there’s scope for surprises and one final push up.
As I mentioned last week, keep it simple and trade what you see … which for us that means the Big Money Footprints in the context of our three Master Keys. Avoid having an opinion, think Quality over Quantity, and only trade the AAA setups breaking out from Key Levels.
Today you’ll see a reminder of just how powerful and quick this technique is with our unique tools and indicators, including the OVI and Shrinking Retracements.
Market Outlook:
Last week I said “the indices continue to show robustness, and while I would expect 20-dmas to be tested, the overall strength has a good chance of continuing until after the big techs report their earnings … but as with the past couple of weeks there is still some room for further upside first”.
It’s a similar theme for this week, with the additional observation that the big techs have made an initial wobble.
Watch the video for more detail.
The Main Indices:
The S&P has to pull back soon to its 20-dma even if there’s still more juice thereafter (and that’s not a certainty).
The QQQ is almost back at its 20-dma, and all will depend on GOOG, META and MSFT reporting this week.
The IWM will pull back to its 20-dma in the next few days if the above three stocks disappoint.
The DIA went parabolic last week, and that typically doesn’t last for long with an index. A test of the 20-dma is inevitable soon.
Market Timers:
- Longer Term Market Timer (OVIsi):
Now full green and has actually strengthened in the last two weeks. I think that trend will slow very soon. - Medium Term Swing Timer:
Bullish and not overbought. Twice it has flirted with being overbought over the last couple of weeks, and twice it has made only fleeting retracements. - Index OVIs:
DIA and IWM have remained pretty strong, while QQQ’s and SPY’s OVIs look to be faltering slightly.
Fast Filters Stock Selection:
There are still a few nuggets around those attractive Key Levels.
Today I’ve included a couple of bearish setups with bearish Shrinking Retracements. As ever, I use the various Big Money Filter combinations near Key Levels with convincing OVIs.
Here is a smaller list of stocks that look interesting for our consideration. In the next couple of weeks I will only post this in our new Expert Watchlists area, so you’ll have to log in to see it. Remember to reference the video so you know what my sentiment is on each one:
ABBV ACDC BABA BAX BBWI BPT BXP CAT CFG DHR DUOL GEHC GH HD IBM JNJ NEE NKLA PAYC SRE TGT TMO TRIP UAA VOYA VTLE WH WRK WY
Software Upgrades:
By the end of this month we’ll be deploying the new Expert Watchlists function – this will have profound implications moving forward.
The Journal app calculator and embedded TV will follow.
Then the big charts upgrade and by popular demand, the broker API.
Also the Shrinking Retracements are currently found in the VIP watchlists, but will soon be deployed as TradeFinder filters in their own right.
So, many 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!
Events:
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.
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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.
