8. July 2012 15:58
On my travels in the US, and yesterday I was privileged to have lunch with a trading legend.
Gil Morales is a former colleage of the great William O'Neil, and co-wrote the phenomal book "How to Trade Like An O'Neil Disciple - How We Made 18,000% In the Stock Market"
Think about that ... 18,000% in just 7 years. I thought I was doing well with my 3,000% - well, consider me humbled!
So, why were we meeting? Well, Gil had been kind enough to read my new book (more about that another time) and even more generous by giving it this glowing review.
"Guy Cohen's work confirms that the observation of price and volume action alone is all that is necessary for investment success. Here he creatively expands on this essential investment principle by seeking an edge through the incorporation of price and volume information inherent in options transaction data, namely trading volume and open interest, in conjunction with favorable technical patterns and trends that are identifiable in the underlying stocks. The end result is an inspiring, concrete, and elegant system that investors can both learn from and readily employ in their own trading. - Gil Morales, co-author of "Trade Like an O'Neil Disciple: How We Made 18,000% in the Stock Market," (John Wiley & Sons, 2010) znc co-managing director of VirtueofSelfishInvesting.com.
What's the upshot of this? Well, a new friendship, and a potential research project in the offing, combining the OVI with Gil's own work. To that end, Gil's co-author Chris Kacher is already pouring over OVI charts and back-testing it.
It's Austin TX later today for the next leg of my US tour. Earnings season is around the corner and the markets are in no-man's land.
All the best