OVI Market Commentary

Hi Everyone

The main idices are still grinding up on low volume as we draw to the end of earnings season.  The S&P has a marginally positive OVI while the Nasdaq’s is neutral.  

It’s almost as if the market is waiting for something to burst out and say “BOO!”, but the holidays are currently in full swing and the low volume to be expected at this time of year.  That doesn’t always translate into lacklustre charts, but right now is a bit like walking through treacle. 

SPY
Drifting up on light volume as the price approaches the spring highs.  OVI just above water.  

spy 2012.08.15.jpg

QQQ
Nice patterns forming than the S&P, but here there’s no OVI activity.  

qqq 2012.08.15a.jpg

AAPL
Forming a bull flag as we speak. Looking good as we approach big news days on 12th and 21st September.  12th is the anticipated date of announcements for new launches (iPhone 5, new mini iPad perhaps?), and the 21st is when the new line of products could go on sale.  Expect anticipation to grow … it sure has been with the OVI over the last few months and historically that means good news for the stock price.  

aapl 2012.08.15.jpg

GS 
Hasn’t broken its flag low, so technically this is still a hold.  The OVI is holding up well and the stock is currently just under its 200 day moving average.  

gs 2012.08.15.jpg

JPM
Looks like another version of GS right now.  Good pattern, but with less impressive OVI.  

jpm 2012.08.15.jpg

MS
Looks like there’s some activity going on with Morgan Stanley options right now.  The stock is just below two resistance levels … If one of the financial stocks pops to the upside, I’d imagine a couple of the others will follow suit.  

ms 2012.08.15.jpg

SLB
What’s happening with oil stocks?  Well a couple of them seem to be waking up.  SLB is hugging its rising trendline and the OVI looks solid.  

slb 2012.08.15.jpg

CVX
Same with Chevron … trending nicely and the options traders have been in since early June – good for them! 

cvx 2012.08.15.jpg

IBM
One of the nicer looking setups right now.  Bull flag / cup and handle with strong OVI combination.  

ibm 2012.08.15.jpg

ENS
A stock found by my CAN SLIM filters … decent OVI-Bull flag combo here, plus the bonus of strong fundamentals.  

ens 2012.08.15.jpg

PANL
Breaking out from its bull flag as we speak, and the OVI has responded over the last few days after hovering just in positive territory for the last few weeks.  

panl 2012.08.15.jpg

So, even in the midst of a rather irksome market there are potential opportunities, just in our comfort zone of the OVI Express40 stocks, and without having to look too far.  

Remember, even if you don’t place a trade right now, keep up the 5-minute review every day as it only takes a few days for good patterns to form.  

All the best

Guy