TVO Market Barometer 9/24/15

TVO MB 9-24-15b

Just around 3pm today the “I told you so” bears found themselves singing a different tune and will most likely return to hibernate in their caves, at least until the next time the market turns south. What many of them fail to realize is that the time to short is when optimism is high, because when doom really sets in (since when do threats of worldwide recession stop folks from buying?) the down move has often already occurred and a reversal is well in the works. Over the past 3 sessions the HG has been high, but is retreating slowly. While the up/down volume ratio has favored the bears, up volume has been steadily increasing and TVO values are now firmly in positive territory. So now some folks say we’re rallying because of Yellen… But wait, didn’t we selloff because of Yellen? Funny thing is both views can actually be true, and the that’s reason why the need to be right (as well as trading off news) can be such a dangerous thing for a trader. At the end of the day it’s your bottom line, not your score, that really matters. So stick to your plan and trade accordingly. -MD

For more on market volume, The TVO System, The Heat Gauge (HG), or how to trade options follow me on Twitter (@TradingLicks) and StockTwits!