Low Volume Monday

Yesterday’s volume was low as the indices recovered some of their poise.  The low volume is not the behaviour of hungry bargain hunting bulls, so we’re not out of these woods yet.  

Not all stocks are looking bad, but it’s a nervy time right now. 

The Forum members have been relaying some lively discussion and brainstorming to me with some interesting ideas being mooted.  

One such idea was to see if we can decipher some way of displaying ‘level of green-ness’ in the OVIsi.  

Actually this is a good idea that we’re already looking into, but it’s also important not to allow the market to panic you into curve-fitting or over-complicating what we already know is an excellent and robust trading strategy over the medium-long term.  

In terms of the OVIsi we are looking at the main sectors, which already looks very promising and should be in production in the next few weeks, and we’re also testing if the OVIsi can produce a shorter term short signal.  Both of these developments could lead to simple variations of the ‘level of green-ness’ concept.  

But again, we do not want to over-complicate or curve fit just because the market can be uncomfortable from time to time.  My way of trading avoids the roller coaster of most other trading methods, but I doubt there’s any trading method that doesn’t have times of minor discomfort.  I think this is where we’re a bit spoiled because we rarely have to cope with too much discomfort with our way of trading.  Of course if we can continue to improve that we will, but not at the cost of curve-fitting or over-complicating things. 

In today’s video I review several of our favourite stocks as well as a few potential reversal setups.