TVO Market Barometer 3/18/15

TVO MB 3-18-15b

With the oscillator at -4.0 yesterday we stated that we were approaching the zone where reversals often occur. With TVO, the definition of a reversal is a significant change in market sentiment pertaining to volume… and today was a doozy. There was solid accumulation across the indices as the dovish Fed opened the gates for an all out bull stampede. The oscillator has not yet turned, but it’s looking like a strong possibility that we’ll shift gears and go long on Monday. And what about our current short position? With our well-timed entry on 3/2, our puts are still in the money and even if the market keeps going straight up, the trade will likely end up a scratch. Now we all know nothing goes straight up (or down) forever, so many bears will think now’s the time to short, but in the absence of a complete blood bath selloff tomorrow, TVO tells us that time has passed. -MD

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