More drama in the markets yesterday, and while China continues to contort, other markets are trying to stabilize today.
A quick video today to highlight the three main factors that have kept us OVI traders safe during this extraordinary few days.
1. The OVIsi has been red (bearish) since June 22nd. During this time the markets continued to move sideways until last week.
2. Individual stock OVI readings. While nothing has escaped this recent gyrations many stocks have had negative OVI readings for some time, including several oil and gas stocks, and the likes of IBM, HPQ, etc.
3. Our dynamic trailing stops. Any long positions were almost certainly stopped out last Thursday, meaning meaning you would avoid the dramas of the next two days.
A fourth factor was knowing about our reversal setups … this is what got us out of HD just in the nick of time, as you saw last week!
What next? Trade what you see and try to avoid over-thinking. This blowout will create great opportunities.
