Guy Cohen

Volatility is Coming

by Guy Cohen 19. June 2017 11:09

When I say volatility is coming, to be fair, it's already arrived as we saw at the end of the previous week when tech stocks took a hit from which they haven't yet recovered.   

As you know, I'm not in the "prediction" business, but I've more often than not been able to sense the mood of the markets by observing the OVI for individual stocks and the broader market. 

For some time I've been observing that the OVI Sentiment over the entire S&P 500 constituent stocks is very tight with the red and green lines being virtually inseparable.  This suggests significant hedging activity and/or sector rotation activity.  

This means that the big investors are enjoying the new highs but they are preparing themselves for yet unseen dangers.  This bodes for an interesting earnings season in about one month's time.  

In today's video I illustrate all that, plus how the charts that show how the amateurs were sucked into buying tech stocks on Friday 9th June before the rug was pulled from underneath them during lunch - I showed you that last week, but it'll really hit home as you see the video.  

Also some other stocks in today's review, including new flags, in-play railroad tracks from last week, and how easy it is now to manage your watch list ... and there's still so much more to follow!  

Loading the player ...