This Fabulous Run Is Close To Overbought

It’s been a stellar couple of weeks. We nailed market direction, and we nailed a number of stocks that went nuts.

Last week I said the current upside was likely to continue but was not unlimited.

This week there are mixed signs in terms of how long this run continues. I’ve mentioned that it was likely to be connected with earnings, and we’re now past the halfway mark for that.

So, while there are still some decent bullish setups right now, there are also many stocks that are overstretched. Therefore, as always please do not chase!

Also, as I look at my tools for market timing, two of my favourites are suggesting we are due for a mean reversion soon.

Last week my words were: “And while it looks like there’s more upside juice in this current cycle, it’s not without some headwinds around the corner, with the timing likely to be after the next couple of weeks, or perhaps during“.

So, even more than usual, be sure to protect any upside profits quickly.

Market Outlook:

In this phase I think further upside potential is not impossible, but likely to be rather limited.

Watch the video for more detail.

The Main Indices:

The SPY has had a great run, but will soon need to rest.  
The QQQ has had a rapid run, but it too will soon need to rest.
The IWM does look overbought.

There is still another two weeks left in this earnings season, but I don’t think the current upswing will last that long.

Market Timers:

  • Longer Term Market Timer (OVIsi): Amber, and will likely turn half-green next week.
  • Medium Term Swing Timer: Positive and not overbought.  
  • SPY OVI: After a couple of positive weeks it’s wobbling.

Further upside looks limited and I expect a reversion to mean quite shortly.

Fast Filters Stock Selection:

Last week saw another batch of excellent nuggets, especially the ones which had ‘Smart Leverage’! This week is less “nuggety” due to many stocks being overbought.
Here is a smaller list of stocks that look interesting for our consideration:


Software Upgrades:

In today’s video I show you a glimpse of the very near future, where you’ll be able to analyze options right next to the chart even if you’re using just one screen. It’s crazy stuff!

We literally make options “Easier than before, and Easier than everyone else“.

Further tidy-ups will be made and slight design improvements to increase contrast, etc. But our main focus is those dramatic upgrades for the coming weeks in time for Miami.

In terms of algo development, the formulas for short-term overbought stocks and shrinking retracements (I can’t wait for this one!) will be deployed in time for Miami.

So, in time for Miami you’ll see new features such as looking up options strategies directly from the charts, followed by a massive upgrade to the Journal area for stocks and options. That will be followed by an entirely new charting app in the summer. So many exciting developments that will completely transform our experience.

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


The OptionEasy Bootcamp on 22-23 April is only around the corner, and with all the upgrades coming, it will be our best ever. It’s at the National Hotel on South Beach Miami, and we’ll also be broadcasting live and recording it. I will be unveiling more upgrades and findings, making all of our trading more precise and more efficient.

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.

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