TVO Market Barometer 1/21/15

TVO MB 1-21-15b

Although there was a moderate decrease in overall volume, the oscillator has reversed direction from -5.4 to -5.1 and our proprietary algorithm (based solely on volume data) has generated a buy signal. The reversal is not due to an increase in accumulation, however, but rather a slow down of distribution (which has been the dominant feature of the market since 12/26). When the sellers run out of steam and take to the sidelines, a vacuum is created where buyers are likely to jump in. So you’re thinking this is a trade just in time off the ECB meeting, right? Well I can assure you that TVO has nothing to do with news and what’s going on this week is purely coincidental… or is it? As we’ve alluded to many times the market lives in future time and the events that seem to affect the indices at present are actually long ago priced in. If you’re worried about tomorrow’s news, check out yesterday’s volume. -MD

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