Markets back to Sanity …
If you heeded my warnings you’d either have had a quiet week last week amid all the turmoil, or you’d have been short because the OVI and the trend has been distinctly bearish since June and before.
There are times where it’s constructive to simply observe, and for many people last week was one of them … which is why I stayed deliberately quiet! With such fluctuations going on the markets can be unpredictable, which means we may choose to sit them out until sanity is restored.
So, while other traders were losing their shirts, those in the know were safe and sound, or raking in the profits.
If you follow the OVI (which you really should!) you’ll have seen that the S&P OVI has been largely negative since March, and especially so through the summer. The downturn simply wasn’t a surprise and those who were positioned on the short side have done rather well!
SPY
All the best
Guy