Earnings Begins In Chaotic Fashion

Ok … so what about the start of earnings season? I recorded today’s OVI Market Review on Thursday night, with great caution and with this same title “Earnings Begins In Chaotic Fashion”. On Friday the market decided to turn down, vindicating my previous and current week’s reticence.

Market Outlook:

Well, earnings started in earnest this week, for the most part the financials (who always report early on in the season) were all over the place. Gapping up, racing down, and then a myriad of different behaviours varying from JPM, C, GS, MS, BAC, WFC, etc.

And then on Friday the rest of the market – apart from energy – decided to wobble too.

Last week I also mentioned that I’ll be sticking with post-earnings setups.

Friday vindicated this cautious outlook.

Our market commentary continues to be outstanding. Mastering market timing enables you to swim WITH the tide at the right time.

Watch the video for more detail.

Market Timers:

• Longer Term Market Timer (OVIsi):
  Half green.

• Medium Term Swing Timer:
  Bearish.

• The Main Indices OVIs:
  All red.

Stock Selection:

Recording on Thursday meant I missed the fun on Friday, but the sentiment was spot on.

We did well with highlighting a number of stocks – even the bullish ones like SG, MAR and a couple of energy stocks – but the others were either upside breakout non starters (that’s ok, the EDGE Trade Plan means no entry, no loss), or confirmed bearish resolutions.

This week I restricted myself to vanilla filter combinations and we’ll probably stick with that for next week too.