Resilient But Flaky Conditions Set To Continue

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Last week I said, “Broad conditions remain sub-optimal and plum AAA Big Money Footprint setups remain thin on the ground”.

That remains the case this week. Yes, there are a couple of interesting setups, and I’m so grateful that our setup requirements help differentiate the wheat from the chaff. Not just that, but they help us discern what kind of conditions we’re in. And right now, it’s all a bit flaky.

The best approach: be patient like the lion! It will pay off handsomely.


Market Outlook:

A sideways week for the big indices, while the IWM made a somewhat surprising move up.

Next week has another midweek holiday, with July 4th being on a Thursday, effectively meaning a 3-day week!

As I’ve said over the past few weeks the markets look like continuing to be inconsistent and ragged until we get some insights from the upcoming earnings cycle.

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:

The SPY and QQQ could still benefit from meaningful pullbacks to their 50-dmas but are proving to be remarkably robust.

The DIA looks like it has some upside potential, while the IWM has pulled itself into some upside contention.

Ultimately these are tricky conditions with not a lot of conviction to really sink your teeth into. Respect this and be ready with the big guns for when there’s more clarity.


Stock Selection:

When I do next week’s review, I’ll be away from the office and very happy that our new TradeFinder from the charts app will be up and running! This will save me (and you!) so much time!

I’ll review my Fast Filter combos, but when there are many stocks in a particular Fast Filter set, I’ll apply other filter constraints one at a time to reduce the list size. And next week it’ll literally be a click to do that … without having to switch screens or open new tabs or windows! Happy days!

Like the last few weeks, there’s not much out there of real AAA quality this week. If you think otherwise, then your analysis may not be stringent enough!

Remember a chart 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 (Options Volatility Indicator), 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: 00:45:26


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Comments

Harry Goldstein 2 weeks ago Member's comment

So are there any individual stocks you recommend?

WiseTraders 2 weeks ago Contributor's comment

We don't offer trade recommendations, however there are a few individual setups covered in the video that are worth taking a look at. We also publish a weekly watchlist of four stocks to keep on your radar, this week's can be found here: https://talkmarkets.com/content/stocks--equities/four-stocks-to-watch-this-week?post=452847