Last week I mentioned that the market was providing setups in both directions …
We got that right! Oil and gas stocks and many financials benefiting from the recent sector rotations on the bullish side, while tech stock have been hammered on the bearish side – remember I mentioned put options last week.
But conditions have been sub-optimal with many stocks slamming down with huge ranges, and then yesterday whipsawing back up to close at their highs for the last day or two.
That kind of action is largely unhelpful as it means perfectly decently placed stops have been taken out for literally just a few minutes, and then the stock has risen back up to well above the stop level .
This, clearly is not our favoured market behaviour, and I’ve been alluding to this sort of thing for a while.
Of course we continue to trade what we see, but right now what we see is unhelpful behaviour, so please be cautious and vigilant.
Optimal conditions will return, but my preference is for a good clear out followed by a couple of months of solid basing action.
Last week’s webinar with Glenn was very informative, and many of you mentioned how much you enjoyed it.
If you want more information just book in a session to talk through your needs with my Support team at www.ovi.to/consult.
In today’s OVI Market Review, you’ll see bearish as well as bullish setups where our Big Money Footprints are prominent and obvious!
