As I mentioned last week the markets have continued their solid recovery since the railroad track reversal pattern on 7-8 August, with the low volumes most likely to be attributable to the time of year.
Behind the scenes we can see that the OVIsi is very close to turning green. Remember it is a long term indicator, designed to avoid the noise, not catch every swing turn the market makes. In today’s video you can see how well that has performed over the last 10-11 years, catching the meat of all the seriously large moves. For a long term timing indicator you can’t ask for much more than that, however, we are testing to see just how far we can push it!
In yesterday’s email (which was not a video!) I discussed the debate between empirical testing and aesthetically pleasing trading opportunities. I refer to that subject in today’s video as well, but it’s worth absorbing both. I think we are heading towards a very healthy mix of both. Uniquely in the retail space we actually do have the empirical proofs, but as a trader and a service provider I am personally also sensitive to the perceived value of aesthetics when it comes to OVI trading setups.
Also in today’s video I review the market. There are several decent looking bullish opportunities shaping up. I’m crossing my fingers that the OVIsi will remain red for two more days, but I cannot control that. The reason is that on Wednesday we should be releasing the OVI-Flag copilot which will go a long way to addressing the aesthetic conundrum for the automated side of things.
In the meantime, the Guided Discretionary method is still fantastic. Just look at how many stocks display easy-on-the-eye correlation between their OVI reading and their share price movement. It’s all in today’s video.