TVO Market Barometer 9/18/15

TVO MB 9-18-15b

About a week ago, the “no rate hike this time” cat was let out of the bag, and the select few in the know started buying the rumor like crazy. Overall volume steadily grew to +9% by Fed day, but the real surge in volume happens when folks “sell the news,” and this event at nearly a +50% volume increase was no exception. Many bears (and bulls) who tried to time the media hyped announcement were surely taken for a ride, as the SPY roller coaster rose to over 202 and then quickly retracted to the 195 support area. TVO HG, however, without paying any mind to any Fed hype or price indicators, caught the swing on 9/10 and we sold our calls on Thursday for a stress-free profit of +30%, just before the drop on Friday. When is our next entry? The HG is pretty hot right now (and volume can’t get much more exhaustive), so buying calls at Monday’s open for another short-term swing. -MD

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