Yesterday I said the following, verbatim:
My prognosis for the markets remains unchanged. In the short term we’ve had some upside, but medium term I see challenges ahead.
Ok, I didn’t expect it to go quite so nuttily upside in just a day, but it seems the powers that be in the Eurozone have come up with a plan that the markets seem to like … but I still think there’s more volatility to come.
As ever, we just have to trade what we see, or sit out the uncertain earnings season.
SPY
Well, it’s popped alright! Up almost 3.5% today on good volume – you’ll see the charts tomorrow. If the OVI doesn’t get properly excited about this move then I’ll be surprised. It’s then a question of how long can this run keep going for.
GS
I mentioned GS before the open on Wednesday. Overnight its OVI turned positive as the stock broke out. And today it has flown. Up over $10 and almost 10% … This is the chart after Wednesday’s close. Log in to the PTC area tomorrow morning to see how the OVI has faired today.
CAT
A positive (if not barnstorming!) OVI for the last couple of weeks, combined with a textbook bull flag set up a great move today. The only problem was that it gapped at the open, meaning our buy-stop-limits didn’t get triggered. Bounced off its 200-day moving average today at around $97.72.
All the best
Guy
