It’s odd to always start an email in this way, but I hope you’re keeping well and safe … and perhaps even finding some benefits from the extraordinary lock-down circumstances.
Whether it’s catching up on Netflix or reading books, the really amazing thing about it is that all over the planet we’re all being affected by COVID-19 and its consequences.
Anyway, the beautiful thing about our activities is that the stock market remains open for business and we are able to use our tried and tested formulas to exploit the higher probability setups, just the same as ever.
Extraordinarily, the markets have continued to show robustness, though the closer the S&P gets to its 200dma the more intrigued I will become about a strong reversal back downwards IF a high probability setup manifests.
That would need the OVI to be instructive, plus some kind of reversal or consolidation which then breaks down.
But that’s all conjecture at the moment, and of course it’s all subordinate to TWYS … Trade What You See!
And what we see at the moment is a robust market with limited opportunities but opportunities nevertheless.
Two weeks into earnings season and I’m focused on some “pre-pre” earnings (ie moves to enter and exit before earnings actually happens; then post-earnings; and also 200dma breaches with consolidations.
So there’s plenty to keep us occupied, and our risk exposure is very low because of our method.
Two things to close with before going to the video …
- First, my research team is still at full tilt along with all other members of my team.
The main research work that will impact you right now is taking a closer look at OVI stock correlations. Presently it’s based (rightly!) on a quantitative premise, which is producing excellent results for our fund.But I would love to see another version that produces more obviously aesthetically pleasing candidates!That may or may not be possible, but I have persuaded the quants to now take a detailed look at OVI charts, and we just did a marathon session on that on Friday. Typically quants don’t want to look at charts because they want to avoid confirmation bias, but now we have our empirical basis, I think it’s time they had a look at what we do in our guided discretionary trading. - The second thing I wanted to mention was a big thank you to my team and all the attendees of my Miami OptionEasy Bootcamp from last weekend. It was a great success, and the Zoom after-party was great fun too … (I ended up falling asleep at around 3am my time while the party was still going on!)
Today’s OVI Market Review is focused on earnings season, and it really didn’t take long to unearth some decent setups – though remember, a conservative P1 is absolutely essential right now.
Again, look after yourself and your loved ones.