In today’s video I take another quick look at QIHU where my reservations from Tuesday have been answered … its earnings were not on Tuesday, hence why the implied volatility hadn’t been rising!
I also talk about the OVIsi which is showing green even though the market is miserable and clearly has many more downtrending than uptrending stocks in the OVI Dashboard.
In such circumstances we have to use some discretion with a capital D, unless you want to purely play automation and take the inevitable bumps and bruises that will occur from time to time, particularly in a choppy market like this.
I explain this in more detail in the video. Even in a blissfully trending market no-one should ever rely purely on automated signals. In this current inconsistent and volatile market any automated system is going to be whipsawed and produce its worst results. Hence why 2015 was a tough year for many hedge funds.
As private traders/investors we have the advantage of being able to switch easily and focus more to the discretionary side of things, keeping cash on hand for the plum opportunities that inevitably do come along. This is why I have always insisted on you knowing the Guided Discretionary way of trading while using empirically proven methods.
