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In terms of the markets, by now you should recognise the signals for when the indices are overbought.  

This would have saved you discomfort from last week’s pullback where once again the 50-dma has provided a safety net … for now.  

Just one month ago I warned of inevitable impending volatility after the big pullback day of October 10th.Such behaviour rarely occurs in isolation, and when you can recognise it you can get prepared for what happens next. 

Market Outlook:

I mentioned that the indices looked overbought last week and after the revelation of Michael Burry’s giant short on AI stocks they duly pulled back to their 50-dma’s.Only the IWM overshot its 50-dma.  

This earnings season is mixed but there are still some decent post-earnings bullish setups forming, especially after Friday’s short covering bounce back.  

Volatility and steep pullbacks will continue to be part of this market, so be super picky and protect your profits early and fast.

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

Watch the video for more detail.

Market Timers:

• Longer Term Market Timer (OVIsi):
  Green.
• Medium Term Swing Timer:
  Bullish.
• The Main Indices:
  Negative for all except for the SPY which is neutral.

Stock Selection:

I’ve again focused on post-earnings (mainly bullish) Big Money Footprint setups, but I would counsel patience and strict adherence to conservative profit protection.
 

More By This Author:

Early Earnings Results Point To More Upside
Earnings And Volatility Will Lead To Ideal Setups
As Predicted… Volatility Is Here