Friday 13th Could Have Been Scarier

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This week saw wholly expected volatile behavior in the last serious week of this bumpy earnings season.

Friday’s action was a tug-of-war as inflation concerns were calmed, but will that be enough?

If you cast your mind back to just before earnings, it looked optimistic, but the first week set the scene with the financials taking a hit. This had me accelerating my more bearish outlook.

It’s important to not be wedded to a particular viewpoint. I commented on this in the Telegram groups. When you look at the markets through the lens of buyers vs. sellers, supply/demand, you see things more clearly and can pick a side with greater accuracy.

Be ok with being wrong with your viewpoint. The market is an expert in tripping up peoples’ views!

Market Outlook:

As I’ve mentioned before recently, I wouldn’t be surprised if the main indices don’t make a minimum 10% pullback in the coming weeks and months, especially now earnings has passed with little to cheer about it.

Of course, geopolitical events could disrupt that assessment, but there is typically only so much robustness a market can summon in the fact of relentless Big Money selling as evidenced by the repeated bearish monorail bars since October.

A counter theory would be that the markets have held up pretty well despite all that pressure.
True, but decent broad pullbacks tend to be preceded by volatility … Pre-shocks if you will.

This environment provides an ideal time to learn and determine what kind of trader/investor you are.
Jump into our Learning Vault or the Videos in our Gift Area of the Platform and see if our style suits you.

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):
Green.
Medium Term Swing Timer:
Bearish.
The Main Indices:
The QQQ’s OVI is unambiguously red, while the other three are pretty much neutral.

Stock Selection:

This week I looked high and low – around Key Levels, overbought, oversold, monorail bars, all the Big Money Footprints, you name it. After a week like this there’s no need to be exposed to unnecessary risk.

This is what sets apart the best traders. They know when to keep dry powder, and I think – by and large – this would be a good time to focus on the learning and observe for a couple of days. There are a couple of interesting setups, and things can change quickly, which is why we need to keep checking in. But I’m not looking for particulary busy Monday in terms of trades.

Video Length: 00:32:10