Markets Did Decide … The OVI was Right Again!
Yesterday I suggested that the markets were undecided, but that the OVI was still negative and the best course of action would be to stay safe for now. I also suggested we could be in for a tough autumn.
Well, I must admit, I didn’t expect it to be quite so quick to get such a big gap down, but you simply have to pay attention to what’s going on.
The OVI continues to be broadly negative and the global economic outlook doesn’t look too rosey despite some record earnings posted by the biggest corporates out there. In a couple of weeks everyone will be back from vacation and we’ll have some new dynamics in place, but as ever, TRADE WHAT YOU SEE.
And what you see right now is a volatile downmarket. That means the more cautious will stay on the sidelines and the more aggressive may take a down-bet WHEN supports are broken.
SPY
All the best
Guy
