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By now you should have felt the volatile nature of this particular phase.

In just the past five days we gapped up then back down … All in line with our commentary for the past couple of months.

In today’s Market Review you’ll see a lot of educational charts so you’ll be fully prepared for the next phase of the market.

Market Outlook:

Last week I mentioned that “volatility and steep pullbacks will continue to be part of this market, so be super picky and protect your profits early and fast“.

That’s a pretty decent summary of what’s happened, and it’s similar for this upcoming week too. The main difference being that there is an increasing number of bearish setups that look good now, and I expect more wobbles in both directions.

The delayed disclosures of Michael Burry’s short AI positions spooked the markets, only to be further complicated by the winding up of his fund.

Does that mean he’s admitting defeat?
I doubt that!

More that he probably feels it’ll be a choppy ride (down) and he’s wealthy (and patient) enough to ride it out with his own family office funds without the pressure of managing external client funds.

Remember, he called the real estate / banking collapse well over a year in advance, during which time his short positions experienced serious discomfort.

Our time horizon tends to be shorter than that, so we’re not looking that far ahead. But the fact remains the markets are skittish at this time, and skittishness is not optimal for the swing trader’s time horizon.

The good news is that it passes quite rapidly, and we have to be aware and alert because things can change quickly, and we want to be ready for the decisive next move.

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

Market Timers:

• Longer Term Market Timer (OVIsi):
  Green.
• Medium Term Swing Timer:
  Bearish.
• The Main Indices:
  Negative or neutral for all the main four indices.

Stock Selection:

This week was one of the more challenging weeks to find gems. That’s fine – it’s a natural phenomenon.
My main focus has been post-earnings … there are a few out there in both directions, but I’m not anticipating major moves that are smooth.

It’s choppy out there, and a good time to hone your technique in preparation for the next productive phase in the market.

More By This Author:

Earnings And Volatility Dominating Setups
Early Earnings Results Point To More Upside
Earnings And Volatility Will Lead To Ideal Setups