The markets want to keep rising, but this pesky government shutdown threat is a dark cloud of uncertainty hovering over right now. Plus the fact that earnings season kicks in this week.
What this means is that we’re currently in a news-driven market, which in turn means that technical methods are secondary until the news has blown over.
First we need to get this threat of a shutdown put to bed. Then the markets can start to behave more normally, Once this happens I’d expect some charts to continue their up trends.
If the markets do get back to their winning ways, then expect gold and silver to suffer. Their charts don’t look too happy (see GDX below).
SPY
I don’t think this is another head and shoulders attempt, but Washington could decide the fate of this chart. The powerful reversal shows what the market really wants to do .. but common sense has to prevail politically.
DIA
QQQ
The Nasdaq wants to keep rising.
AAPL
Off our radar for a while, but this is a potential reverse head and shoulders in the context of a persistently positive OVI.
F
A stock that will benefit from political and wider market harmony.
FB
Not to be underestimated in the medium to long term. If it gets its ad revenue model going this could fly. If it doesn’t it will sink. Either way, it’s going to be a fun ride!
Finally today, I’m considering relegating some stocks out of the OVI Express40 list due to dull performance! These will be replaced by more interesting movers with a history of responding to the OVI.
Also, I’m considering creating a new list of “First Reserves”. Almost like a promotion/relegation system for the OVI Express stocks. New stocks under consideration are:
COST; CSCO; DIS; EMC; EWZ; GDX; JNJ; KORS; LNKD; NKE; NTES; PCYC; QIHU; SBUX; SINA; SOHU; WFC; YGE.
Stocks in danger of relagation from the OVI Express40 are:
ATML; BBRY; EBAY; IBM; INTC; MRK
I’ll keep you posted!
All the best
Guy