TVO Market Barometer 1/4/16

TVO MB 1-4-16

If you guessed that the HG today was a hot one, you’d be right on the money… but it wasn’t as hot as you might think. The futures gap this morning was just that, while from a volume perspective today’s distribution looks to be just a continuation from NYE where we also had a high volume day with a moderately warm HG (+49). So the question on a lot of folk’s minds is which gap do we fill first? Yes, let’s not forget about the gap at SPY 196, but even though TVO has slowed down in its climb at the moment, in this current range it will take a lot more pummeling to turn things around. -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!

2 thoughts on “TVO Market Barometer 1/4/16

  1. Hi Mike,

    I’ve been watching your TVO postings recently and I must say that it has caused me to rethink my trade signals.

    But could you explain this statement? “After 4 days of heat this may be the bears last breath”. Wouldn’t decreasing volume be bearish?

    1. Not necessarily. Since 12/30 we’ve had 4 straight days of heat on the HG. There’s only so many days we can go without some kind of up-volume relief (last high count was 6 days straight at the end of September). Yesterday’s lower reading of +8 makes it look like things are starting to cool down. Thanks for the comment!

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