Happy New Year!
So that’s a wrap for 2022, one of the weakest and toughest years in stock market history.
The S&P dropped by over 19%, and we are fortunate to have our full range of our capabilities in terms of Market Timing, Stock Selection and Trade Plan to weather the storm.
Our Market Timing has been exceptional. During the course of 2023 I’ll be changing how you receive these updates, so please make sure you’re receiving our messages so I can give you the details.
Stock Selection has required some real skill this past 12-months, and we’ve risen to the challenge. Setups occurring near Key Levels are just one click away now, and time and time again we’ve also make excellent observations of over-extended price levels.
As ever, our Trade Plan has played a crucial role. Our ability to adapt it to market conditions is invaluable as we set more conservative P1 profit targets in order to prevent profits from turning into losses.
And remember, we can also use that tweak with options strategies.
In today’s OVI Market Review I’ll reference a number of stocks as usual, and preview the upcoming 12-months.
We have mega upgrades coming to you for stocks and options, and 2023 will be the most dramatic year yet for improvements to your trading experience and capabilities.
I’m also going to releasing a wave of risk calculators for you. Not the sexiest of all our tools, but super important and I’ll make it super easy for you!
In terms of OVI, we have another year under our belt where the OVI showed its value without any room for doubt.
Our automated long-only portfolio (ie. it can never have short positions) outperformed the S&P benchmark by 2X (losing only half as much, which is a long portfolio manager’s dream!). In fact I have had a £1bn hedge fund manager say they wish they had our figures this past year!
And our OVI hedged portfolios actually made profit in 2022, including our institutional market neutral fund which finished over 4% up. With appropriate leverage you’d be talking 8-10% up in a year where the S&P finished almost 20% down.
Now, I realise that those portfolios aren’t available to retail right now, but they show one hugely relevant advantage for you …
The OVI adds value.
Through our automated quantitative portfolios, we know this for a fact. There is no better way to test an indicator, as the results are utterly objective, untouched by human intervention.
And it translates to your own discretionary trading. How do we know this? Because the OVI started its life in the discretionary trading environment.
So, we can approach 2023 with more confidence, especially with all the new improvements we’re deploying for stocks and options in the coming weeks and months.
All that remains to be said is a heartfelt Happy New Year from me and my dedicated team, and we’ll see you very soon!
Overall, it still looks likely that more bearishness will follow in the coming weeks.
Watch the video for more detail.
The Main Indices:
The QQQ is consolidating at its 52-week lows, and the OVI is still negative. It could find some temporary support here.
The SPY is consolidating just below its 50-dma, and its OVI is no longer showing signs of life.
The IWM is side-stepping while its OVI is remarkably robust.
If you look at our market commentaries you’ll see how good they’ve been.
- Longer Term Market Timer (OVIsi): Amber, and will likely stay amber for this coming week.
- Medium Term Swing Timer: Negative and not oversold.
- SPY OVI: Slightly red.
What looks likely is a short term breather followed by a waterfall set up.
Fast Filters Stock Selection:
This week I’ve made a number of Fast Filters to unearth the best looking charts. Big Money Footprints near Key Levels and with consolidations.
Here are a few stocks that look interesting for our consideration:
AMD BABA BILI CEVA CGNX CRM DGII DOCU DTM FDS FSLR HGV HQY IBM IMO IR KMI L LGIH LMT LU MCO NE OKTA PYPL QRVO RHI RTX SPLK SPOT VOYA WGO WWE XPEV ZTS
New features such as looking up options strategies directly from the charts are now in development in time for spring. A big swathe of upgrades will be released in January. Stay in touch to discover more as we unveil best-of-breed applications!
The VIP Chart upgrade is scheduled for Q1. Deploying your Trade Plan drawing directly from the charts will be part of that, as well as a TV channel … and we’re also planning integrated messaging so you can form your own group of trading buddies (with their consent of course)!
We’ve also been doing some interesting analysis on overbought scenarios.
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.