TVO Market Barometer 5/4/16

TVO MB 5-4-16

The market gapped down today after yesterday’s long signal on the Heat Gauge, allowing us to buy at-the-money SPY calls lower than expected at the 205 strike. Meanwhile on IO, our new satellite indicator (a “moon” of sorts to TVO), we have our first buy signal. Even though the system is still under development, the backtesting results are exciting enough so far to begin live trading, or “forward-testing” if you will. The strategy is similar to HG, but on a longer time frame (a few weeks), so we’re looking at call options that are at least 60 days away from expiration to avoid any effect of time decay on the premium. -MD

To learn more about market volume, The TVO System, The Heat Gauge (HG), or how to trade options follow me on Twitter (@TradingLicks) and StockTwits!

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The indicator descriptions in the above graphic represent general market sentiment. The actual TVO System signals and trades are listed below in the Members Area. To view, please . Not a Member? Join us.