TVO Market Barometer 12/10/15

TVO MB 12-10-15

The chill has begun (HG was -2 today), but a -14% drop in overall volume, and therefore still no accumulation, makes any gains feel somewhat bittersweet for the bulls. The big hedge funds “pump and dump” strategy has been working well to shake up average retail investors, and nail-biting among them is surely escalating before the Fed meeting. HG has given us an exit signal for our short-term SPY calls, so some risk will be taken off the table. As for TVO we will remain long SSO through the Fed and will potentially add to the position (with long-term SPY calls), as an oscillator reversal at this point will likely trigger another buy signal. -MD

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