Image Source:
As we anticipated, the market went up last week in what technically was a reasonably predictable week even though most eyes were on the news.The catalyst for Thursday’s rise was the Fed 0.5% rate cut. Worth noting we rarely talk about macro events, but we still typically get market direction right.The rate cut could be a double edged sword though. Is the interpretation of why the Fed went for the 0.5% rather than a 0.25% cut because they fear weakness in the US economy, or was it for a more proactive positive reason?The point is, the market will interpret it whichever way it wants to interpret it. How many times do you see the market react in the opposite way than seems logical or expected? Loads of times! And that’s why I look objectively to our unique signals that are rarely wrong. And if there’s too much uncertainty, I’m happy to be patient and let news play out first.Be aware of the news, protect yourself from the news, but don’t try too hard to interpret it. Instead, pay attention to our signals and be the lion, not the headless chicken. Not every market condition is traded optimally with low risk. Focus with me on the ones that are optimal.See below for Market Outlook.
Market Outlook:
Watch the video for more detail.Last week I said:
Continued volatility, with probable upside.That was a good call with many individual stock winners. This week I anticipate a slight stalling, nothing too dramatic.Our market timing continues to be outstanding. Being good at market timing enables you to swim WITH the tide at the right time.
The Main Indices:
All the main four indices rebounded up through their 50-dma’s and finished at or near their week highs.
Stock Selection:This week I again focused on OVI combinations with consolidations, Shrinking Retracements, and the Key Levels. I also played with the new filters I’ll be releasing soon for VIPs.Pick your playbook and stick to the best quality setups that conform to it.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!Video Length: 00:48:44More By This Author:
News Is Noise
