NO SPEEDING

I trust you’ve had a most enjoyable weekend considering the new stacks you earned over the last few weeks. Bravo.

I thoroughly enjoy this process of taking step-by-step motions though a corrective market. Having gone through the last few weeks, I’d go back and print out some of the recap posts I did. Not to admire the work, but to remember the process.

The next feature we’ll focus on from here is speed, or lack thereof.

There are three things I watch in order to understand market speed: $VIX, ATR (average true range), and correlations (which can be measured various ways).

Bear markets are fast, bull markets are slow. We’ve gone through some fast market action over the last several weeks. The sharpest corrections always occur within the context of a bull market. To confirm we remain in a bull market this is where we should pause to work off overbought signals. If this is any sort of bear market as many are calling for, then speed will need to exist to support this cause. To support my overall case, if there is no speed, then we’re simply stalled and waiting for the next leg up.

For the upcoming week, I mentioned that the cybersecurity and software stocks excite me.This includes $PANW, $FEYE, $FTNT, $DATA, $PFPT, $RNG, $STMP.

A few others I’d focus on: $PYPL, $TSLA, $CYOU.

If the market itself starts to slow down, we’re going to absolutely crush it this week. We’re entering the types of markets I outperform in.

See you tomorrow,

OA

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