TVO Market Barometer 8/19/15

TVO MB 8-19-15bSome folks are wondering, why does the market go back down after every rise, especially after last Wednesday’s startling reversal (which seems like ancient history) and Monday’s volume confirmation follow through? Answer: It’s just the way it is, and if you don’t like it, well… But, seriously. A shakeout wouldn’t be a shakeout if it didn’t, well, shake people up a bit, and with almost a +20% increase in overall volume it looks like the weak hands are pretty much shakin’ all over. Our Heat Gauge, which is known as a bit of shakeout indicator of sorts, was burning today at +72, so at tomorrow’s open we’ll initiate a short-term long position. The media folks want you to think that China and the Fed make a difference, but it’s up to you as trader whether to get hung up on the news or to decide if you can stomach yet another turn on the rate hike roller coaster. When noise like this is riding high, it’s best to reach for the volume knob, or else get taken for a ride. -MD

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