Two weeks ago we turned to a more bullish stance, which has proved to be correct, though we still await the explosive movement out of these consolidations.See below for Market Outlook.
Market Outlook:Watch the video at the end of the article for more detail.This is interesting from last week because it still applies now: “While turning to bullish I also mentioned the possibility of further raggedness … But overall bullish was correct, and there’s every reason to continue with that outlook.”This too still applies: “The only wrinkle is that one of our ‘mean reversion’ pies in the OVI Dashboard is signalling overbought. This is the pie that counts the number of stocks with OVI moving averages above (green) and below (red) particular thresholds. Currently this pie is at levels that have often produced reversals soon after. The counterweight to this is that the markets aren’t overbought at this time, and there are many decent setups around Key Levels right now. So, stick with those and be vigilant about protecting your profits early.”Our market timing continues to be outstanding. Being good at market timing enables you to swim WITH the tide at the right time.
The Main Indices:
The Dow edged up to overbought levels while the other indices have drifted sideways.
Stock Selection:
Like last week, today was easy to find excellent setups. First, I reviewed last week’s stocks that I referenced. Then I fast-filtered for my favorite setups including OVI, Key Levels and Shrinking Retracements. And finally I went through my personal static watchlists.Pick your playbook and stick to the best quality setups that conform to it.My playbook is OVI, near Key Levels, Shrinking Retracements, and a consolidation/sideways move. The other two Big Money Footprints are highly desirable but those four are essential to ME!
Video Length: 00:44:04
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