An extraordinary week where again it was our Trade Plan that showed its immense worth as none of the most interesting bullish stocks broke out, meaning no breakouts, and in turn no losses.

The four day week certainly did not live up to the bullish expectations it was setting up for, and in many respects we’re now looking at more bearish setups.

The wrinkle with that outlook is that the news that came out last week is not all bad. The jobs report was not surprising in any way, and interest rates are on course for a cut.

See below for Market Outlook.

Market Outlook:
 

Watch the video for more detail.

In the last two weeks I’d mentioned that our mean-reverting OVI Threshold pie in the Market Timing Dashboard was indicating a reversal, though my other indicators were not corroborating with that.

The market had largely set itself up for upside, but that special indicator flagged caution and prevailed.

The news is certainly not all bad but there was quite a vicious selloff.

So, what next?

In the very short term, I would say the further downside is likely but not for long. That means some sort of support in the next few days and possibly a hard rebound.

These are not ideal conditions, so either sit it out or make sure you take your profits early.

In the medium term, the election will be influencing sentiment, and right now the main sentiment is uncertain.

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

The Main Indices:
 

All the main four indices took a hit and finished the week at their lows. The DIA and QQQ are approaching Key support levels while the SPY and IWM have just breached Key support levels.

Stock Selection:
 

This week I focused on the Big Money Footprint combination of Fast Filters and consolidations.

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!

Video Length: 00:42:52

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