TVO Market Barometer 8/5/15

TVO MB 8-5-15b

According to the Heat Gauge, there was a significant boost in overall volume today (+10%), but things were pretty much right down the middle in terms of the up/down volume ratio. That doesn’t necessarily mean that all things were equal, though, as the NASDAQ showed convincing volume accumulation, while SPY went the other way, which sort of evened things out in the wash so to speak… but not really. We know, however, that this lack of a clear direction accompanied by high volume (known affectionately as “churning”), is often a red flag telling us that there’s a bidding warfare going on, and soon one side will give way. TVO has started to reverse, but the indecisive volume action (resulting in 2 consecutive days of the same oscillator value) has negated any long signal, so we continue to stay in cash for the time being. -MD

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