As I go through my regular routine, I see a market that has performed as we anticipated it would do through earnings… i.e. bullish with some bumps.
The question is: what now?
Most likely some more upside to the end of earnings, but there are also signs that a pause is necessary. I also see that several oil and gas stocks have recovered strongly from bearish looking setups last week.
As I’ve mentioned in the past few weeks, 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.
I’m looking at automating more of this Market Timing piece and will include this crucial skill set in the practical exercises, which we’ll do at the Orlando Options Bootcamp in April .
Watch the video at the foot of this email for more detail.
The three big indices are overbought while the IWM has become more volatile earlier than the others.
It seems only a matter of time for the anticipated retracement to come, and that’s likely to be some time after earnings.
Keep sticking with our game plan of AAA setups near Key Levels. Don’t get distracted by missed opportunities.
The Main Indices
Likely nothing too dramatic just yet… There are still a couple of weeks of earnings to go, and then we should see some more corrections.
As always, let the setups form, and protect your existing profits and any new profits early.
Longer Term Market Timer (OVIs): Green, which bodes well for the longer term, but that doesn’t preclude the anticipated shorter-term correction. Medium Term Swing Timer: Bullish and retreating from near overbought levels. Index OVIs: The SPY and QQQ OVIs are more convincing than the DIA and IWM but are likely to soften in the coming days and weeks.
Fast Filters Stock Selection
As I mentioned last week, you may notice an increasing number of bullish Shrinking Retracement setups forming. This is good news and will bode well especially if/when we get the anticipated pullback after earnings.
Shrinking Retracements can show up for several months at a time, so there’s no hurry to act just because you see a bunch forming. We need other Big Money Footprints to be prominent alongside them as well as a safe setup. The user feedback for this remarkable indicator continues to be amazingly strong, and it’s only available to VIPs.
This week sees fewer plum setups of the kind I really like, so it will be interesting to see how the markets behave for the second half of earnings and beyond.
You can find my detailed thoughts this week in the video.
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.
Remember, you can play the video at 1.25x or 1.5x speed if you want to save time! I have placed all the stocks covered in today’s review in your “Latest Preview” watch list.