TVO Market Barometer 10/5/15

TVO MB 10-5-15b

A lot folks are saying that the market changed it’s tune last Friday, but the action as far as volume could already be seen brewing in the form of accumulation on Wednesday. Prior to that our Heat Gauge caught some exhaustive selling (last Monday), and today we closed out our short-term calls for a sizable gain (+146%). The bulls may want to take heed (and some profits) in light of today’s HG which, at -23, is bone chilling, and could result in a swift yet sizable pullback, especially with a gap below at SPY 195 left unfilled. We remain long with our Dec15 calls, and may be looking to add to the position as TVO has recently dipped into negative territory… and if accumulation continues, it won’t be there for long. -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!