OVI Market Update
While the broad markets make record highs poor old AAPL is making 12-month lows. Remember, you only want to enter a trade where all the planets are lining up and it’s a no-brainer type of situation.
The S&P has gathered its composure after its wobble though volume is subdued on the ETF.
The Dow is similar but with an uglier OVI reading. This makes me a little cautious as to the longevity of the current record breaking behaviour, but for now it is what it is.
AAPL is still looking bearish – another bear flag with little support.
Now the financials: BAC looks like a potential head and shoulders, but the OVI is positive, as are many of the other financial stocks we follow.
C is reaching for new highs and the OVI is with it stride for stride.
GS is proving to be rather resilient in terms of its OVI. Let’s see if price follows …
JPM still looking good – may even form another flag here.
MS not looking quite so good .. even a sort of head and shoulders forming and a negative OVI for the last couple of weeks.
Now for Gold and Silver …
Both looking at bit feeble and looking for support. That will come if the broad markets run out of steam.
GLD
SLV
Another stock looking weak is BIDU. Only two months ago this was looking bullish and now it’s looking vulnerable to another drop. OVI has been negative for over a month, and price is forming a bearish channel near recent lows. A short below support.
CAT also looking wobbly. Looks like it’s filled the December-January gap and wants to move down another leg.
Oil stocks: CVX pushing for new highs and an OVI that has been positive for months.
PSX hasn’t yet had a break since its split from Conoco. The only negative thing I can see here is a Doji, but other than that it’s still looking positive for PSX. Keep your eye on this for a new bull flag to form.
SLB not looking so good price-wise, but its forming a pennant over the last two weeks and will pop one way or another. OVI remains positive while price is bearish, so this falls into the “Avoid for now” category.
Something’s going on with FB. The OVI doesn’t shoot to its maximum reading for 2 days without some sort of peculiar activity happening in the background. However, price action isn’t giving us any clues just yet, so hold fire on this one.
GOOG powering to new highs and its OVI has correlated nicely. Could even be about to form a new consolidation.
HD forming two Dojis in succession but also could be forming a bull flag. Amazing performer for many months, with price and OVI correlating like a dream.
HPQ, who’d have believed it! Pushing on but needs to consolidate for us to be able to enter a trade.
I’ve liked MCD for a while now – and I’m not talking about their food! Great OVI and price correlation for many months. Pushing on for new highs.
MRK looks like it wants to push upwards past $44.
NFLX is forming a micro head and shoulders. The January gap looks so tantalizing to be filled, but don’t let wishful thinking determine your trades!
VZ continuing its fine form. Good correlation with the OVI especially in the last couple of months.
X (US Steel) looking a bit fed up with things.
YHOO forming another bull flag?
All the best
Guy
