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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 I was medium term bearish but that there were some exceptionally robust-looking stocks which we’d cover. I also suggested that in this highly news-driven market it would be wise to be the lion right now, ie. take it easy during this period of uncertainty.

On Monday we were looking clever in terms of market bearishness, which was good if you were quick to protect your profits – which of course you must do in this volatile news-driven climate. On Tuesday that reversed and the main markets have kept rising since, with those robust stocks mentioned collectively performing very well.

So, what now?

It’s ambiguous, we’re now in earnings season, and it’s almost impossible to say with real conviction right now.

On the one hand the indices are up, on the other hand earnings has started with a bearish bias with more stocks gapping down than up.

During Friday’s webinar, I suggested it looked positive in the very short term, but with a real sense of caution … hence today’s image of a scared bull!

Market Timers:

• Longer Term Market Timer (OVIsi):
  Red.
• Medium Term Swing Timer:
  Bullish.
• The Main Indices:
  The SPY’s OVI has perked up over the last few days, the QQQ’s just yesterday, while the DIA and IWM’s OVIs are subdued.

Stock Selection:

This week I showed how I review several dynamic and static watchlists. As well as the Big Money Footprints combination Fast Filters, I also pay great attention to the quality of consolidations and Shrinking Retracements stocks.

Remember, our game is to play when the Big Money Footprints align neatly. By and large, they’re not right now – with a couple of exceptions, but the broad markets remain flaky right now.

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: 01:34:45

More By This Author:

Time To Be The Lion
Huge Bearish Wins … Now What?
Another Market Timing Win – And We’re Bearish