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I’m a firm believer that a needlessly bad trade avoided is as valuable as a good trade made. A bit like a penalty save being equivalent to a goal scored.

With so much misinformation abounding on options, one of my missions is to correct any misinformation. And with the OptionEasy tools it’s very easy to do that. And it’s also very easy for you to ensure you don’t make needless mistakes.

Two weeks ago I suggested the markets needed a pause from the unrelenting downdraft, and that’s exactly what happened. 

Last week I said there was no easy fix for this market … and that’s proving to be prescient as well, as the markets have stumbled.

Market Outlook:

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

Last week I said there was “no sign yet of a convincing bounceback … In other words, there looks like being no quick fix for this market.”  

This week I’m repeating that and reiterating a bearish stance.

Watch the video for more detail.

Market Timers:

• Longer Term Market Timer (OVIsi):
  Half green (somehow and only just!).
• Medium Term Swing Timer:
  Bearish.
• The Main Indices:
  Only the DIA doesn’t have a red OVI out of the four main index ETFs.

Stock Selection:

The main emphasis this week has been on bearish setups. These often tend to be untidier than bullish setups and need more attentive management. As ever, my focus is on OVI and other Big Money Footprints near Key Levels. This week I’ve also highlighted a few stocks that are overbought with bearish monorail bars.

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: 00:40:24

More By This Author:

No Quick Fix For This Market
One Week Is Currently Like A Decade In These Markets
Short Term Relief Likely