TVO Market Barometer 9/9/16


While some folks may say Friday’s dip was a falling knife, we see it as a rising opportunity. With TVO’s values steadily getting lower over the past few weeks, the blade has already been in motion (remember volume precedes price) and it’s only a matter of time (in this case one day) before price gets with the program. We exited our SPY calls (+82% gain) on Wednesday, 2 days before the fallout (our entry was on 6/29… 2 days after the brexit bottom), and while the timing may seem uncanny, TVO has a pretty impressive track record of calling tops and bottoms over the past 16 years. HG at +93 is just about as hot as it ever goes, so regardless of price levels (or any kind of seasonality… seems like whenever there’s a dip it’s always “the worst month of the year for stocks”) a sky-high bounce is likely soon to follow in the short-term. -MD

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