TVO Market Barometer 1/11/16

TVO MB 1-11-16

No doubt you’ve heard by now that 2016 is the worst start to a year in the stock market ever. Volume-wise, with 8 straight days of heat (heavy down-volume) on the Heat Gauge we’re closing in on the record there as well. Folks often celebrate outliers and for a good reason… they can offer great examples in which to live our lives by. In statistical trading, however, it’s sometimes best to observe them and then disregard them… so let’s move on shall we? Up-volume is slowly rising, but the selling may not be at the total exhaustion level yet to give the bulls the bounce they’re looking for. And when that happens, the short the rip crowd waiting in the wings may get much more rip than they ever bargained for. -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!