Bumpy bullish earnings as expected

Bumpy bullish earnings as expected

Last week I said that while the main indices had retraced (apart from the DIA) I expected them to rebound as we get into earnings season.

This is exactly what happened, though the financials didn’t have a great week as the big boys started to announce.

It all bodes for some upward but inconsistent trajectory during earnings, but as I’ve said a few times, I expect this market to run out of steam after earnings season. A retracement then would set us up nicely for the rest of the year with plenty of bullish Shrinking Retracements.

With our market timing commentaries having been so good for so long, I’ve been sharing my discretionary technique with the quant team to see how much of it we can automate.

That’s all part of the commitment to more practical exercises, which will continue in our Orlando Options Bootcamp in April. 

Market Outlook

Watch the video at the bottom of this email for more detail.

The three big indices are holding on near local highs, while the IWM is struggling to hang in there somewhat.

The likelihood remains for a bumpy bullish earnings and then a more “interesting” pullback thereafter, creating plenty of optimal setups for us from spring onwards.

Keep sticking with our game plan of AAA setups near Key Levels. Don’t get distracted by missed opportunities.

The Main Indices

From the main indices, the IWM remains the shakiest, as I have mentioned it would recently. I also mentioned I didn’t expect major weakness *yet* in the other indices.

As always, let the setups form, and protect your existing profits and any new profits early.

Market Timers

Longer Term Market Timer (OVIs): Half green.Medium Term Swing Timer: Bullish.Index OVIs: They’re all a bit unconvincing right now. That probably tells us something about the strength of this earnings season (i.e. upward but not necessarily convincing) and what could transpire after.

Fast Filters Stock Selection

This week I’ve conducted a number of searches to get a feel for the markets – it’s part of my routine – and then I gravitate to setups near Key Levels.

Most of the flag consolidations right now are pullbacks from highs, hence showing as bear flags. That’s fine, and a number of those types of setups have already rebounded upwards off Key Levels in the past few days.

Watch my video for all the details.

Events

Our Options Bootcamp in Orlando on 20-21 April will be the most practical ever, with around 20 exercises and with the most bonuses ever.

Like we just did in London, each session will have a practical exercise for you to complete, so you can build your confidence in finding the exact type of setup you want to focus on. These practicals will involve all the options strategies covered, with each one taking only a few minutes to complete. This will give you the confidence to use our options tools to their maximum potential while saving you huge amounts of time. 

Video analysis

Remember, you can play the video at 1.25x or 1.5x speed if you want to save time! 

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Author: Kyle Moore