Hi Everyone
Just a quick note to comment on the general market action right now.
Yesterday’s rebound is a natural reaction and I wouldn’t be surprised to see more wild gyrations for a few days.
What’s clear is that the markets need a bit of time to settle down, but as we’ve seen countless times before, they always do get their poise back and the tradeable patterns will re-emerge for us – so just be patient and there’ll be some great opportunities for us in the next few weeks.
As an overall comment, once again the leading authorities (this time Europe) have responded to a debt crisis by issuing yet more debt. This is delaying the inevitable choking effect that Greece and other indebted nations will face down the road.
Even the leading economists of the world can’t agree on how this will play out! Some say inflation and some say deflation! What seems reasonable to expect is uncertainty, and typically the markets do not like uncertainty. At this stage, my expectation is that I’ll be focussing on bear breakouts over the coming months, but as ever, the charts will tell us in their own good time!
In terms of the charts, the OVI has bounced back strongly in the Dow and the Nasdaq, and is still just negative in the S&P. It’s a moot point as we don’t have many great patterns showing right now, and it’s best to use the OVI in conjunction with an well formed chart pattern.
As a quick reminder, by the end of this week I will be closing the doors to new entrants in my Private Tutorial Club (PTC).
If you don’t have the OVI, you must now see how powerful it is to your overall trading. Get it now http://ptc.flagtrader.com where I will also help tutor you on a regular basis.
All the best
Guy
Get the OVI charts for all optionable stocks, plus coaching and much more at: http://ptc.flagtrader.com
