That was an action-packed four days, but the bottom line is that the markets have shown continued resilience while a few promising stocks had quite serious wobbles before recovering.
Many stocks continued their trends – notably PKI that I made special mention of and was pretty much a perfect setup … more about that in a few moments.
At the same time, several stocks encountered steep retracements and immediate resumptions of their trends. Very difficult to handle those and some would have resulted in very frustrating – albeit small – losses.
The Ultimate Combination for Following Big Money
Here’s where we at OVI Traders have such a big advantage. We can pick out big-money plays in a matter of seconds with our TradeFinders.
Here are the main components for identifying a bullish serious big money play – and PKI was a perfect example of this:
- Persistent positive OVI reading
This reveals hidden money activity and carries the largest probability tell-tale sign of them all - Recent volume pocket (spike) on a rising price bar
This reveals overt big money activity that confirms interest in a particular stock - Gap up at earnings
Large investors will be alerted to stocks that make good surprises - Recent cross up through the 200 day moving average
Large investors will be alerted to stocks that break their 200-dma’s
Now, you won’t always get all of them at the same time, and even when you do, it doesn’t guarantee a winner 100% of the time. But it is extremely solid, and a way by which you can live your trading life … PROVIDED you have a proper trading plan to go with it.
So, what else is helpful?
- A consolidation around which to form that proper trading plan
Remember the controlled entry, P1 to protect your initial profit, and P2 to trail the stock if it keeps trending in your favour - A signal that shows the initiation of momentum
I’m working on this and will deploy soon
In today’s OVI Market Review I’ll review many of our recent stocks plus new ones that are setting up. Remember, when you play with the TradeFinders, try using the filters on specific watchlists. It is important to get familiar with particular stocks that you’ll discover form constructive patterns repeatedly over time.
Stay safe and please do follow me on Twitter (@GuyKCohen) and our OVI Facebook page (www.facebook.com/ovitradersclub) … you may discover the odd nugget in those places too!