OVI Alert – Review of the Past Few Weeks

In mid-late December I mentioned a number of stocks that looked poised for breakouts to the upside.  Of course we’ve had fiscal cliff dramatics to deal with along the way, but as we get into gear for 2013 it’s worth highlighting the power of our method and the clear advantages we have.  

I highlighted the following stocks as bullish opportunities back in mid-late December – here are few comments on those: 

AMZN: Originally broke out and hit P1 target on 18th December before falling down and now making new highs again.  OVI has remained positive for all but one day.  

BAC: Has formed a couple of bull flags, OVI consistently positive, and up over 14% since I mentioned it.  

C: Similar to BAC with bull flag forming in late December and a modestly positive OVI.  Up over 10% from that point.  

F: Up over 17% from the breakout point.  I mentioned that it could be tough to trade but the OVI situation looked good. 

FB: Breaking into new ground – but again, beware of earnings where this is likely to gap one way or another.  Odds are on a positive one, but don’t be a gambler unless you can find a cheap straddle.  

GS: Another financial stock making new highs.  I’d been bullish on GS since early September.  

JPM: Grinding to new highs – similar to the other financial stocks.  

MCD: Broke out but failed.  What I said at the time was that if you were in, ringfence your position to a no-lose by raising the stop loss to the breakeven area.  Now it’s back up again.  

WFR: This was my punt … and after a wobble it’s well up past the breakout point.  

Again, with all of these we were only interested in consistent OVI readings and clean chart patterns.  It really isn’t much work if you just focus on the 40 OVI stocks, and it’s not much more if you extend your search to the FlagTrader filters.  

Being focused on a good method really does pay dividends with trading.  Being focused in your mind is also an essential quality.  

All the best

Guy