Hi Everyone
Just another reminder of the most important lesson of trading …
“Trade What You See”
Remember Warren Buffett’s quote: “Forecasting tells you a lot about the forecaster but nothing about the future”.
So, what can we see right now? Well the markets are still trending up and the OVI is positive for all the indices.
DIA (DJIA ETF)
Earnings Season is around the corner which could bring a few surprises. Market volatility is very low right now – that’s typically associated with prevailing bullishness. However, at some stage it has to turn. In practical terms, for now that means manage your trades properly and monitor them every day particularly with earnings approaching.
It also means that if you’re into trading volatility, straddles are very cheap right now. Last earnings season all my earnings trades were winners, and I’m on the prowl again!
If you want to learn how to do straddles, my Illuminati-Trader CD-ROM course is on my private tutorial site, http://ptc.flagtrader.com.
All the best
Guy
Get the OVI charts for all optionable stocks, plus coaching and much more at: http://ptc.flagtrader.com