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Greetings from Italy during what’s been a hectic week of … work!  

This enables me to conduct more searches in quick time if I’m so inclined. 

In today’s broadcast you’ll see how the markets have been a mixed bag this past week. We’ve had good winners from our classic setups, but there have also been false breakouts.  

As I’ve mentioned over the last few weeks, conditions continue to be sub-optimal. That said, they are far from catastrophic as you’ll see from the good number of solid setups that behaved as expected.  

Again, you should see the importance of striking when a stock looks hot near a Key Level … and we’ll soon have improved filters to this end. 

Continue to be the lion! Don’t become a headless chicken just because you missed one.
 

Market Outlook:

Watch the video for more detail.

The SPY and QQQ encountered a sell-off bar on Thursday, which they partly recovered from on Friday.  

The DIA broke out beautifully from its consolidation as highlighted last week, but the big surprise was the Russell 2000 (IWM), which gapped up from out of nowhere on Thursday.  

This suggests further evidence of stock/sector rotation which I mentioned recently.  

As mentioned last week, the signs are looking marginally positive for earnings season, but it will be a very mixed bag.  

Quality is in short supply, so at least that gives us fewer setups to focus on. 

Our market timing is a real strength that few others possess. Being good at market timing enables you to swim WITH the tide. 
 

The Main Indices:

As expected from last week, the DIA did have upside potential, and broke out nicely. Conversely, the IWM produced a big upside surprise. 

We now have a peculiar situation where all the main indices could be considered overbought!  

The conundrum for us is that we lean towards markets and setups near Key Levels (I personally gravitate to the 50- and 200- dma’s).  

So, while the indices would benefit us if they could form a quick pullback, in the meantime we’ll keep focusing on stocks that are consolidating near their own Key Levels.  

Ultimately tricky conditions prevail, so be cautious and fussy … particularly with so much news being released in the coming weeks.  Be ready with the big guns for when there are friendlier conditions.
 

Stock Selection:

Again I benefited hugely from our recent upgrades, which enabled me to complete my research in record fast time. 

In the next few weeks we’ll have a webinar where I’ll go through all my shortcuts and time-saving hacks that the new WiseTraders Platform enables us to enjoy.

Remember, quality beats quantity. Even with our amazing new technology, a chart still needs to have the right qualities in order for you to consider trading it.

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 desirable but those four are essential to ME!

Video Length: 01:00:12

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