TVO Market Barometer 2/27/15

TVO MB 2-27-15b

Down volume outweighed up volume on Friday by only by a fraction, so come Monday we may get a short-term bounce, but by the time we get to Wednesday’s Beige Book (sounds benign, but it really isn’t), we could possibly be testing SPY 208. The turning oscillator tells us that we may have reached a saturation point where there is just no more room for any buyers. It’s time to let off steam and the BTFD crowd are just going to have to step aside for now if we really want this market to go higher in the long-term. We look to short the market when TVO reverses at +5.0 or above, so we’ll be exiting our long positions and buying puts at Monday’s close. Our exit plan for shorts? More on that in future posts so stay tuned. -MD

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