Why The Behind-the-Scenes OVI Sentiment Behaviour Influenced This Great Earnings Run We’ve Just Had
The OVI Sentiment is changing colour as the S&P hits a critical level.
I’ll be talking about this important event, plus my OVI Earnings Play strategy in my
webinar on Thursday at Noon ET (5pm GMT).
Keep reading to learn about the link between the OVIsi and the excellent earnings run we’ve just had …
The OVIsi track record over an 11-year period is almost double that of the S&P and with about one third of the risk. That means we have to consider what it’s doing seriously.
I currently display the OVIsi as a colour (red, green or amber) every day. However, behind the scenes I can also see how the bull/bear counts are moving and when a change in colour is likely to occur. I’m monitoring this behaviour closely to evaluate its significance over the long term.
In terms of this latest earnings run, during the webinar I’ll show you why the behind-the-scenes activity did influence my thinking, and how perhaps we can all use this information in the future.
As you’ll see in the chart below, from the first week of October the bullish counts (blue line) were rising and the bearish counts (red line) were falling, almost perfectly mirroring the S&P’s rise.
This gave me the confidence to highlight those great winning earnings plays including AMZN, MSFT, GOOG, BIDU, FB, LNKD,PSX and others. And this is what I’ll be demonstrating during the webinar.
The safest way to play a change in market sentiment is by way of confirmed breakouts. The fact is that this market has had a huge run up over the last six weeks, and is now back in the zone it occupied from February to August. So it’s no slam-dunk right now from a broad market perspective, but as I’ve shown so many times, there will be stocks with clear setups that will ripen nicely for us.
Register your place for the webinar as we’re already 70% full.
All the best
Guy
