The big news on Wall Street is that the S&P 500 was up last week… oh, and it seems they did get a little snow too. One thing they didn’t get, though, was volume. As the market continues to rise from the depths of what they’re calling a “4 quarter-point rate hikes” selloff, volume continues to fall. HG was a chilly -12 on Friday, but with a -7% slide in overall volume (and -22% on Thursday), we still don’t have the big institutions on board to move things along. Now before the bears start foaming at the mouth, our longer term oscillator TVO hit -7.3 and has started to reverse. Historically with reversals in this greater than -7.0 range, the market follows suit and then FOMO (fear of missing out) almost always kicks in. So we prudently added some more longer-term calls to our long position from December. Looking for this to play out over the next 2 or 3 weeks. -MD
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