A Pullback Would Be Optimal

Cutout paper illustration representing scheme and Stocks inscription

Image Source: Pexels


With such high stakes geopolitical uncertainty in the air, a controlled pullback would be a gift.

Overall, you can see from the Dashboard plenty of green in the pies, but that’s likely to diliute in the coming days.

The big takeaway is that you must follow my EDGE trade plan, with partiular reference to P1, protecting your profits early.

Before my Market Outlook for the week ahead, just to remind you that personalisation of our charts is on its way, so you’ll always see them according to your personal preferences. I’ve green-lit the designs so it’s just a question of scheduling the deployment.


Market Outlook:

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

Over many weeks I’d been broadly bullish, albeit with caution. Last week, In light of current geopolitical events, I said it was likely that the markets would be somewhat choppier.

This was pretty much spot on, though the healthcare sector ETF definitely took me by surprise as it had been looking ready for upside.

So, what about this week’s outlook?

While we’re not what I’d call ‘overbought’, a pullback looks the most likely scenario for the main indices. For the SPY, this means to its 200-dma, which isn’t exactly far away in any case.

The fact is that anything could turn on a dime right now, so stick with our sensible guidance of focusing on AAA Big Money Footprint setups and protecting profits quickly.

I focus with particular attendion on the OVI, Shrinking Retracements, Key Levels, and some sort of sideways consolidation setup at the very least.

Watch the video for more detail.


Market Timers:

  • Longer Term Market Timer (OVIsi):
    Half green.
  • Medium Term Swing Timer:
    Bullish.
  • The Main Indices:
    The OVI for all the main indices is pretty much neutral as of Friday’s close.


Stock Selection:

This week’s analysis was performed prior to Friday night’s analysis, but the only surprise was that the longer term OVI Sentiment Indicator (OVIsi) turned from amber to half-green. That hasn’t swayed my outlook for a pullback, and in terms of stock selection I’ve continued to focus on the highest quality Big Money Footprint setups, with OVI, Shrinking Retracements and Key Levels at the forefront of my attention.

This approach – along with the requrement for some kind of sideways setup to break out from. – continues to serve us well.

The key to consistency is to pick your playbook and stick to the best quality setups that conform to it. If the setups aren’t there, keep your powder dry for another time.

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! With my new VIP filters, I’m also now looking more at overbought and oversold issues.

Video Length: 00:47:22


More By This Author:

Focusing On The Most Obvious Sectors
Markets Hovering Rather Than Soaring
Markets In A Testing Phase

Disclaimer: Results may not be typical and may vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Or Sign in with