OIH RUMBLINGS

The wacky day continues as the market internals again flip to the red after being all over the board. The DJIA has been up and down 45 points and it has changed on a dime a few times today. One rule I remember, although I don't remember from where, is that when the markets are very volatile, a change of direction is probably at hand. WELL WELCOME TO VOLATILITY as the range in SPY today is about $1.80 and the markets are basically flat.

Up above is a chart of the OIH which according to a very savvy chart reader is right at its trend line. I sold some puts here and will follow the trade closely as the OIH is very volatile. It is down about 27 points since May 11, so an oversold bounce may be the play here.