The broad markets are still up – remember I’ve said for some time that the markets just want to go up … well maybe apart from TSLA– more about that in a moment!
The DIA and QQQ are reaching up to new highs with positive OVI readings. And the SPY is similar but with a more mooted OVI.
TSLA and CHK dropped on their earnings announcements – just goes to show you should never take anything for granted around earnings season. I do know that some of my OVI Traders take a gamble on earnings and in most case if you’re doing that it is exactly that – a gamble. There are plenty of great opportunities that aren’t in jeopardy of an earnings surprise.
It would be helpful if these two stocks could now form bearish consolidations with a negative OVI, that would set things up nicely!
GLD is forming a new head and shoulders which I expect to perform if the stock markets continue to rise. GDX is doing the same.
HPQ is forming a nice bull flag with a positive OVI.
X has moved well and needs to consolidate again. Look at the correlation with the OVI.
XOM is on the move but needs a consolidaton for a good entry point.
All the best
Guy