Hi Everyone
YOU CAN MAKE THIS VERY EASY – STICK TO THE OVI AND SUPPORT/RESISTANCE BREAKOUTS
When you see the charts in this eLetter you’re going to like how easy our trading method is.
Remember, we trade breakouts of support and resistance from consolidation patterns. Preferably with the OVI in our favour. That’s it.
If you simply go through the Liquid OVI Charts within the PTC website it takes just a few minutes to see if there’s a trade that fits our style or not.
I mentioned GS looking precarious last week, and we’ll see exactly what happened there in a few moments. Remember, you only need an obvious example every few days to really make this method work.
First, let’s look at the indices as we always do.
QQQ
The QQQ is hanging in there, but only just. The OVI is neutral and we’ve just had a very shallow and quick double top. Could go either way.
SPY
The SPY is similar and could go either way … As with the QQQ, the SPY OVI reading is hovering just negative of neutral and the chart pattern here is beginning to look a bit bearish.
Stock Highlights
Let’s start with GS – this is such an easy trade.
GS
Last time it was just holding support around $150 but with a persistently negative OVI, finally GS capitulated and it has to be one of the easiest trades ever. Looks like now with the long-tailed hammer bar it may find a place to rest for a while.
AAPL
No break her to the upside, AAPL tentatively rolling over.
AMZN
Rising wedge and OVI erratci and headed down … the stock could easily follow from here.
BA
The bull flag is turning into a channel as it gets into its third week of consolidation.
BAC
We’ve had this one’s number for some time … still looks weak.
MNKD
Earnings made this untradeable despite its rather alluring bull flag pattern. Never any OVI signal with this one and it’s done a nasty by gapping down after having poked through resistance for a few minutes. Such are the perils of trading biotech stocks.
RIMM
Getting into double bottom territory here – this was a great example of the power of trend-breakout and OVI in combination.
As I said last time, you will be rewarded for being patient. Not having a trade on is still a position in itself. We’ll get a feel for what’s happening later today and be back again soon.
All the best
Guy