Image Source: Unsplash

Last week I mentioned that Crowdstrike (CRWD) was the catalyst for what should be a much-needed reset. Last week we got at least some of the reset that was needed.

The markets …

And now you can see what I meant over the past few weeks by market conditions looking ‘sub-optimal’.

Just to remind ourselves … over the past few weeks we’ve seen largely overbought conditions accompanied by sub-optimal setups, plenty of whipsaws, false breakouts, and a general lack of tidiness.

Then you get an unforeseeable catalyst that shakes everything up.

The outcome is always favourable as setups can now reform from solid bases – both bullish and bearish.
And we’re all about solid bases – typically near Key Levels.

All that said I’ve been super impressed by how many profit feedbacks have been sent in – again both bullish (example JNJ) and bearish (example QQQ).

So, there are many lions among us!

Market Outlook:

Watch the video for more detail.

The SPY and QQQ are likely to stabilise at least temporarily, though I also expect that general market rotation is not yet complete.

Earnings will continue to a mixed bag, and I’m not keen on taking pre-earnings trades this time around.

If you do want to have a go at a pre-earnings setup, do it on a conditional breakout basis – preferably while watching live.

While quality has been in short supply over the past few weeks, we now see why, and this reset will ultimately product more of the excellent setups that we prefer.

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:

They’re a mixed bag right now. IWM is thriving. DIA is bouncing. SPY and QQQ are licking their wounds!

I would be amazed if the IWM can keep this up for long.

Stock Selection:

On Thursday I gave a webinar where I revealed all my time-saving hacks that the new Platform enables us to enjoy, so please watch the recording if you weren’t there.

Today I focused on loose parameter Big Money Footprint Fast Filters, which I then edited to trim down into more constrained lists, finding several rather decent low risk setups.

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.

Video Length: 00:55:40

More By This Author:

Four Stocks To Watch This Week - Monday, July 22
Crowdstrike Catalyst For A Needed Reset
Four Stocks To Watch This Week - Tuesday, July 16