Greetings from the Alps where I’ve been struggling with a sore throat, lost voice and general man-flu!
And with all that it’s been a hugely busy week. The market has caught its own cold thanks to the Coronavirus, and this gives us an opportunity to take stock and let the market rebuild.
On Friday before the open I was speaking with one of our successful members who has been through her own distinct journey to achieve a 160% return since October, turning $10,000 into $26,000.
One of the things we discussed was the state of the market, and I said that Thursday’s bounce looked like a dead cat … and so it proved on Friday.
Just look at the OVI for the SPY and DIA and you’ll see they looked negative, while their chart setups resembled bearish consolidations. Not rocket science when you know how to read the OVI … and if in doubt sit it out and watch until you’re confident in what you’re seeing.
In tonight’s market review you’ll see exactly what I like to filter for, but it’s vital that you identify a watchlist that resonates with you, and you then get to know those stocks like the back of your hand in terms of how they behave with particular respect to their own OVIs.
This is what our serial winners do – Pat has a small list of around ten, while Chloe’s is around 40 (mainly in tech), and Roger would tend to focus on mining and oil stocks.
Your special watchlist can be partially dynamic in that new stocks can enter, or you do similar to what I do, in that you can have two watch lists where one is your primary list, and the other is your reserve list where candidates can be promoted to the primary list, and vice versa.
This is how you specialise … and it’s the specialists who make the most consistent success over many years.
Here’s this week’s OVI Market Review!
