Market Direction Is A Master Key

Maxim Hopman - Unsplash

Two weeks into the IRGC conflict and our bearish guidance is looking better and better. Remember, we’ve been signalling this for a long time, during which time there have been individual decent setups but with a volatile broader market backdrop.

In practical terms that meant – and I would repeat it every week – that you must protect your profits quickly. Some will go on to our P2 levels and many will retreat back from where they came. That’s exactly what happened.

And in bearish scenarios, by trading options you can avoid the requirement of margin if you buy puts. But you need to do it the right way and with the right stocks with appropriately liquid options.

Have a chat with us here to explore how you can benefit from our unique approach to options.

Market Outlook:

Last week I mentioned that my medium-term bearish forecast was looking even more likely. It’s coming to fruition before our very eyes. It may not be pretty, but there were solid reasons for my outlook.

It’ll continue being a bumpy ride, and I believe there will be more downside to come. A 10% drop from the highs has already been achieved by the IWM and I expect the SPY to follow suit. This is a great time to amp up your learning while the markets are like this. That’s why I’m releasing more practical educational tools like the chart rewind app and pattern recognition on the charts, so you can practice with no risk.

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, oversold.

• The Main Indices OVIs:
  DIA is neutral, the others are red.

Stock Selection:

The instant chart load continues to be a pleasure and game-changer! I ploughed through several hundred stocks in minutes – either manually or via the TradeFinders and Earnings Calendar.

I have identified a few candidates in both directions, but equally I’m happy with dry powder right now.