OVI Highlights – Markets Behaving, And Earnings Around Corner

Earnings is almost upon us, so new positions must be taken with care.  We’ve had a great run with many stocks – particularly the financials – and at some point they’ll need to rest.  BAC took a dramatic dive yesterday both in terms of its share price and OVI, mainly due to a downgrade by Credit Suisse.  No complaints here because BAC has been a great performer since its breakout in early December.   

Among the financials, GS is up at the open, though be aware of earnings on 16th January.  We’ve been positive on this since August, and again with the recent breakout.  Solid OVI and chart pattern combinations over the last few months that have made this easy to trade and win with.  

AAPL remains an avoid, AMZN is consolidating though its OVI has been negative for the last two days.  Otherwise I’d be all over it! 

ATML is justifying our sparing it from the guillotine.  A cup and handle and consistently (if modest) positive OVI sees it now consolidating above its 200 day moving average, having gapped up.  Earnings not until 6th February.  

BIDU flopping around but looking like it wants to breakout.  An inconsistent OVI though.  

CAT – consolidating with a positive OVI, and a cup and handle formation having gapped up.  Earnings on 28th January .. it’s looking interesting. 

CHK – rangebound between 16-18.  OVI neutral though has been leaning negatively for a couple of months.  

CVX – on the other hand a positive OVI for the last two months and looking to break to the upside!  No consistency with those pesky oil stocks.  

F – has been a beauty that I’ve commented on.  Still looking good and gapped up today.  

FB – We’ve been positive on this for a while and the key was the breakout a few days ago.  The OVI spiked from minorly positive (for 2 months) to very positive just before the breakout.  

GOOG – gapped up and then filled the gap this morning … basically looking strong with positive OVI for the last 6 weeks and bull flag from which it’s just emerged.  

MS – looking good with very positive OVI and an imminent bull flag breakout.  However, earnings on 14th January.  

PCLN – consolidating above its 200 day moving average, but could also be a head and shoulders.  OVI has been positive for the last few days, and we need to break up through the latest highs.  

QCOM – fulfilling our basic requirements of pattern and OVI.  

Nasdaq – Same – fulfilling our basic requirements of good pattern (trend and consolidation) and positive OVI.  

RIMM – suddenly looking weak again.  

All the best

Guy