TVO Market Barometer 9/9/15

TVO MB 9-9-15b

Tuesday’s buying volume was so high (+11% increase overall) that there wasn’t anyone left to buy the gap up this morning. So we should see more selling now, right? Well, not necessarily… when big institutions place their bets, they don’t just dump at the slightest hint of a decline. They hold their positions and wait for the inevitable shakeout, triggered by all the nervous Nellies (and Apple watchers out there… pun intended) who doubt the rally is real just because some moving average or price pivot was not broken or didn’t hold, and then they average down (yes that’s what they do) and buy more while the average retail investor is left scratching their head. The HG was burning at +72 (almost as hot as Boston today), so we’ll buy calls for a short-term swing at the open tomorrow… which could take us right up to the Fed meeting next week. -MD

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