A significant snapback in the markets over the last few days, but there are still plenty of stocks yet to report earnings and the market remains volatile. Many stocks’ OVI readings are still negative and while we may miss the odd opportunity I’m happy to sit this particular time out.
As I mentioned last time, I only like to play obvious opportunities where I can quantify my risk in advance. In a market such as we’ve had over the last couple of weeks it’s difficult to quantify risk because it’s jumping all over the place. Over the course of a year there are plenty of easier and more predictable scenarios to take advantage of.