As anticipated, last week was an up-week as we maintain our excellent market timing and market condition forecasts. This upcoming week feels a bit trickier.

See below for Market Outlook.

Market Outlook:

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

Last week I said:
As we start the earnings cycle next week I expect a broadly positive showing from the S&P, though I would have preferred if the S&P and Dow were starting from slightly less extended levels.

Herein lies the conundrum for this week. The DIA and SPY remain somewhat extended, while the SPY and QQQ are poised for probable further upside. It just may not be very tidy.  

Tech, Energy and Finance stocks have some decent bullish setups that are still interesting, and while this earnings cycle is likely to be positive, I’m inclined to be cautious about pre-earnings setups. 

Watch the video for more detail.

The Main Indices:

All the main four indices finished at their week highs. SPY and QQQ have decent positive OVI readings while the DIA and IWM are broadly neutral.

Stock Selection:

This week I went through my regular routine of reviewing my static watchlists and then my Fast Filters. It was more challenging to find plum setups near our favoured Key Levels. This typically tells me that conditions could be choppy. This makes sense given that we’re in earnings season.

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!

More By This Author:

Four Stocks To Watch This Week - Monday, Oct. 07
Uptrend Resumption Likely For Earnings
Four Stocks To Watch This Week - Tuesday, Oct. 01