8. January 2012 03:04
The markets are back even if I'm still out in Oz! This year we'll be looking at how to make the PTC quicker and better. The 10-minute formula is already a great way to stay on top of the markets and make trades in around 10 minutes per day, but we're already looking at how to improve upon this.
By the way, I'm writing this piece in the middle of one of the most spectacular lightening storms I've ever seen. It's 10pm here and this is a snapshot of a video I've just recorded of the storm - I'm staying just by the beach ... This snapshot represents just a fraction of a second during which the entire sky was illuminated from pitch darkness to bright light. The beach is just in front of the trees and the sea is foaming as you can see.
Below is the same view in normal daylight:
Ok, back to work now! One such application of the 10-minute formula in action was with AAPL this week, except that with AAPL being the first stock on the list of our OVI stocks, this could be called the 1-minute formula! I wrote about this last week. We had two obvious signals - a bull flag and a wonderfully positive OVI. So far AAPL has drifted up, making this a pretty easy 10+ points so far with more to follow by the looks of things.
AAPL Now - an easy 10 points so far
Now let's look at the three indices.
The S&P looks ready to pop - a great bull flag pattern, low implied volatility but a disinterested OVI. History shows that we need to take heed of this but the pattern here is alluring.
Very similar to the SPY, the Dow looks primed for a breakout to the upside for the same reasons. But the OVI unusually for this index can't get going for some reason. If you fancy playing this, or the SPY for that matter, make sure you're on top of the situation and have tight stops.
The Nasdaq's OVI is at least alive and kicking but the chart pattern isn't as conspicuous.
Now for some other stocks that are interesting on the eye ...
Keep an eye on the financial stocks - some like GS are trying to get back in the game but it's a bit early to tell just now. Also remember, earnings season is about to begin.
All the best and see you soon.