TVO Daily Market Barometer 3/3/16

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The expected breather that came after a dip in volume from the previous session, lasted all of 2 hours on Thursday as the market brushed off any criticism or sign of weakness (like a certain political candidate we’re all too familiar with) and blasted right back toward new highs. This is our 3rd volume accumulation day within a one week period, and contrary to what some folks think, once the bulls reach this sort of critical mass, momentum like this is hard to stop. We saw this kind of thing happen at the begining of last October, when oversold indicators were shooting through the roof, and when we were also, like now, just a stones throw away from the 200 dma. And when a rally like this does finally the happen (or the boisterous candidate starts to get more votes), the folks who instigated it in the first place either don’t want it or think it’s phony, but that feeling fades quickly as the market continues to rise… and that’s where FOMO really starts to kick in. So be careful what you wish for. -MD

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