Hi Everyone
The markets are wobbly right now and it could be a case of “Sell in May and Go Away”. The key to your trading success is don’t force a trade when it’s simply not there. There simply aren’t many great patterns presenting themselves right now and that’s a sign for us to keep our powder dry. The markets are always cyclical and soon enough the big stocks that we follow will start presenting us with more opportunities again. So if you don’t see much right now, don’t panic!
QQQ
Paradoxically, the QQQ still looks interesing, though the OVI isn’t telling us much right now. The bull flag type pattern is just about still there after Friday’s modest recovery.
Stock Highlights
Very few highlights from our normal OVI-Liquid stocks right now. If the market at large rolls over then we’re going to have to sit on our hands for a while or focus on Bear Flags. We’ll see this week what happens as we settle down post earnings season.
AAPL
AAPL has been churning sideways for two weeks now and the OVI has fizzled out somewhat. In such a case it’s a matter of “play the pattern”. There’s still an opportunity if it breaks to the upside.
BA
Still just holding the bull flag pattern. If the markets don’t roll over we could have more upside here.
GS
Just holding support … OVI lingering in negative territory – this is a dangerous area for GS and if it breaks support (just below $150) we’re headed down.
MNKD
Constructive pattern here but earnings is due so it’s a no-trade here. No additional clues from the OVI but the pattern itself is as good as it gets. This one is a Biotech stock so you’d need to watch it like a hawk even if there wasn’t earnings coming.
PM
If the market rolls over, some stocks may hang on – PM (a tobacco stock) may be one of them.
RIMM
You have to say the OVI has had this one pretty well sussed for most of this down-move.
XLNX
Broke out tentatively from last time. Stops at the entry point just in case there’s no follow through.
LSI
Tight stops required on this one – it broke out and came back to the breakout point. Stops under Friday’s low because of the market uncertainty.
SHOR
Broke out and now a spinning top candlestick bar. No OVI reading on this one. It’s a similar story as with XLNX and LSI – great patterns, a breakout but no “va-va-voom” as they’re hesitating. Stops here under Friday’s low in this uncertain market.
I repeat from last time, you will be rewarded for being patient. Not having a trade on is still a position in itself. Let’s observe what the market wants to do and the patterns will emerge.
All the best
Guy