The Absolute Wealth Newsletter Explains How The OVI Indicator Shows The Way To 2 Profitable Tech Trades

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The Absolute Wealth newsletter says the sector as a whole has responded positively as market sentiment has turned from negative to merely glum for some. The Absolute Wealth newsletter explains this signals that U.S. economic data statistics are trending in the right direction, and has supported decisions to buy stocks after the market discount sale.

How to Use the OVI Indicator AbsoluteWealth.com

How to Use the OVI Indicator AbsoluteWealth.com

The original signal on a rally above $32 was reconfirmed with the new breakout just last week, explains the Absolute Wealth newsletter, with the OVI indicator strength climbing since the beginning of the New Year.

The current Absolute Wealth newsletter explains how to use the OVI indicator to find potential stock trades. The current Absolute Wealth newsletter reports that the equity market recovery has seen three solid weeks of stock gains, because with the New Year there has been less global anxiety. The broad market indexes, the Dow and the S&P 500 are both up by 4% since the New Year, explains the Absolute Wealth newsletter. Those gains are great for the first three weeks of 2012, remarks the Absolute Wealth newsletter, but these gains are only about half the gains of the tech stocks. The Absolute Wealth newsletter also reports that the NASDAQ is up 7%, leading beaten down shares on the rally higher.

The Absolute Wealth newsletter explains that an early January long play in INTEL is up over 30% since entry, and the OVI indicator had been positive, showing that the inside insiders were bullish. The Absolute Wealth newsletter reveals, that in itself is not enough reason to buy, but a breakout rally above $25.80 resistance was the pattern play to pile in.

The Absolute Wealth newsletter reports another Tech play that was identified mid November in Texas Instruments. The original signal on a rally above $32 was reconfirmed with the new breakout just last week, explains the Absolute Wealth newsletter, with the OVI indicator strength climbing since the beginning of the New Year.

The Absolute Wealth newsletter explains what the OVI indicator means, when the line is positive, focus on bullish chart patterns; and when it's negative focus on more bearish chart patterns. The Absolute Wealth newsletter explains to only use the OVI indicator in combination with a chart pattern such as a consolidation or flag, the OVI indicator is not used in isolation. The Absolute Wealth newsletter adds, the OVI indicator is an oscillator derived from options volume, open interest and implied volatility, in many cases, the OVI indicator will actually precede a breakout, and this is the key to the strategy.

The Absolute Wealth newsletter explains, that these bullish tech stock breakouts combined with a positive OVI indicator mean, that the most informed investors are boarding this Tech train, because it is time to take a ride. The Absolute Wealth newsletter says to always remember, to Plan the Trade and Trade the Plan!

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Paul Norwine
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