Well, sometimes you just have to allow the market to have rest. Right now we’re seeing a lot of churning and many stocks exhibiting neutral or nondescript OVI readings. That’s fine … the market is simply telling us it’s on vacation. This is to be expected at this time of year, particularly after earnings season, but there are still some interesting observations we can make.
SPY
Choppy and undecided. Notice the two Doji bars that led to sharp reversals.
QQQ
Similar to the SPY. No real clarity of pattern here, though the OVI is more negative.
GS
I noticed this a couple of weeks ago – someone’s getting interested in GS, so I wouldn’t be surprised if things are improving behind the scenes. Look for signs of a chart pattern forming, could be interesting once the LIBOR fixing scandal has passed, assuming GS isn’t implicated.
HPQ
Still looking weak. Look at the correlation of the downtrend and the negative OVI.
MCD
Nice bull flag pattern and a positive spike with the OVI.
MRK
I’ve been onto this for a while now too. The OVI spikes positively at the beginning of June, since which time the price is up 13%.
RIMM
When will the pain end for RIMM? As with most of 2011, look at the correlation between the negative OVI and the downtrend of this stock.
VZ
Steady as she goes … I’ve been advocating VZ for a while now. She won’t make you millions but a solid performer.
All the best
Guy Cohen