TVO Market Barometer 1/7/16

TVO MB 1-7-16

For 6 straight days the street has been virtually on fire with high volume distribution. This kind of streak has only occurred 9 times in the last 15 years (the record of 10 days straight was in September of ’01). Even though more than half of those times resulted in a rally, TVO has started to slip back towards negative values… A red flag in the short-term. Along with an exit signal Thursday on HG, the message seems clear to step aside, so we’ll be selling our short-term calls (still holding the longer term ones) and wait on the sidelines for more setups to develop. -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!