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The SPY, QQQ and DIA are technically overbought while the IWM is lagging as it often does in bullish markets. This gives us interesting opportunities.

That doesn’t mean the big indices can’t keep running for a while, but the chances of a pullback will increase by the day. You need to watch the signs – for example a monorail reversal bar from an overbought position is often an indication of exhaustion.

If you’re sticking to our guidance to focus on Big Money Footprint stocks that are still close to their 50-day or 200-day Key Levels, then you won’t be getting suckered into overbought issues in any case.

In the past week several of our setups made good progress and a number are still valid for consideration this week.

Before my Market Outlook for the week ahead, just to remind you that personalisation of our charts is on its way, so you’ll always see them according to your personal preferences. I’ve green-lit the designs so it’s just a question of scheduling the deployment.

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 it was challenging to make a definitive forecast on the SPY but maintained the stance not to chase if a stock or ETF has already flown. I also mentioned that the IWM looked bullish provided the other indices didn’t collapse. This was a good shout because the IWM will often lag the other indices on the way up, which therefore makes it an attractive and easy trade in such circumstances.

Although many of our stocks did continue to rise in this shortened 4-day week, a number of them (eg. AMD) pulled back sharply, and there are still plenty out there which haven’t yet broken out and still look attractive.

So, as per last week, there are still plenty of good looking setups tight to their Key Levels and showing positive OVIs and bullish Shrinking Retracements, so that’s what we’ll focus on.

Market Timers:

• Longer Term Market Timer (OVIsi):
  Green.
• Medium Term Swing Timer:
  Bullish.
• The Main Indices:
  As per last week, the OVI for all the main indices is pretty much blue as of the end of the week.

Stock Selection:

Managing risk in your trade management is essential. All too often I see systems and gurus ignore it.

The WiseTraders EDGE trade plan is excellent at its primary function of controlling risk, our Big Money Footprints (BMF) setups also contribute significantly to controlling risk.

When you trade our optimal setups, you’re typically only entering positions on confirmed breakouts of consolidation-type patterns near Key Levels, with no anticipated news imminent, and with several significant and tested (BMF) indications present that suggest an enhanced probability of a conservative first profit target being hit.

That’s how we increase our win ratios, and that’s still before we even get to the specifics of the optimal exit plan.

In this way you can see our holistic approach, which is exemplified by our 3 Master Keys: Market Timing, Stock Selection, Trade Management.

This week I focused again on Big Money momentum setups that still look promising and haven’t yet taken off.

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! Increasingly, I’m researching the resulting impact of very short term momentum, and with my new VIP filters I’m also now looking more at overbought and oversold issues.

Video Length: 00:55:34

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