So, another week where we got market direction correct, but what wasn’t anticipated was the dramatic gap up, inspired by surprise events in the Middle East.
That’s the kind of market we’re in … 99% news-driven, which means high levels of whipsaws.
So you have to be skilled and patient.
Market Outlook:
Last week I said I expect the SPY and QQQ to edge nearer their 200-dmas.
Well, they did edge upwards on Monday and Tuesday, but on Wednesday they gapped up on news, well above their 200-dmas to just above their 50-dmas.
That drama was unexpected, but at least we were on the right side of it.
From here, I expect things to settle somewhat around the 50-dma mark. Beyond that it’s almost impossible to predict on a week-by-week basis right now, but one sector that does look interesting is crypto, with several stocks and ETFs in that space exhibiting robust bullish OVIs and Trend Fades just above Key Levels.
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):
Red (remember it’s slow).Medium Term Swing Timer:
Bullish and steep.The Main Indices OVIs:
The QQQ has a robust positive OVI. The other index ETFs are neutral.
Stock Selection:
Today I went through at least 400 stocks using our super snappy charts on my smartphone.
What’s clear is that the market isn’t clear!
Last week I mentioned finding some interesting bounceback setups, which proved useful.
This week, we’re now in earnings season, and the market seems to be anticipating more positives than negatives in the pre-earnings filters.
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