Well, it’s presidential election year and historically these are quite positive for the markets. So that seems to be the case so far in 2012. Looking at the charts we’ve made some fantastic OVI/Breakout gains already this year, and the signs look good for more gains to follow.
Several stocks that have broken out in the last couple of months are still trending and therefore giving us windfall profits beyond our “first profit target” levels. This is great news.
At some stage the trends will finish and the stocks will retrace and we’ll be waiting for new patterns and breakouts to form. This is the way the markets operate.
AAPL
Taking a quick look at AAPL – it’s still powering ahead at $509 now – that’s $100 since the New Year Bull Flag – but you need to keep your trendline in place and perhaps tighten it a bit now. Volume has softened in the last couple of days and implied volatility has risen sharply, meaning the options market is pricing up the options premiums. The stock price action and OVI still looks good, but you still need to manage your trade sensibly. See how it goes in the next day or so, but for now, perhaps a trailing stop around $500 would be smart, especially as you’ve got plenty of profit on this one.
SPY
The S&P is slowing right now – either to make another big move up or to take a rest. My bet is on the latter.
QQQ
The Nasdaq is still trending nicely … the OVI wobbled for a day, but one swallow doesn’t make a summer so just trade with your trendline in place. At some stage this needs to take a rest and I’m anticipating this to be quite soon, so be prepared.
Gold and Silver are still meandering sideways though I would expect them to surge again if the stock market wobbles enough.
OVI Dashboard Update
Big progress on this in the last couple of days … the creative process is something I really enjoy. We already have great unique trading tools, but I always want to make them better, faster, and easier to use. I only conceived the OVI Dashboard a few weeks ago and already it’s looking much slicker than its rather cumbersome prototype! We’ll release the desktop version first and then the App soon after. In the meantime I’ll keep you up-to-date with progress so you can watch it all unfold into reality!
All the best
Guy Cohen