After just one SWELTERING day on the Heat Gauge the market is back just like clockwork in a tight range volume consolidation mode. The narrow range on HG started just after the one and only across-the-board distribution day since we pulled back from ATHs on 3/1. But what about the dark pools that big institutions use to liquidate their holdings? The “non-transparent” exchanges have actually been around since the 80’s and have always had an effect on the market to some degree. When the majority of the big players are basically just holding their positions, however, the occasional distribution dumps (secret or otherwise) just act to lighten the load and send things higher. So when it comes down to making trading decisions off of data, it’s best to have one simple rule: Don’t try to manage what you can’t measure. Measuring volume is what we do and as far as our volume outlook goes, TVO continues to rise and is now only just become EAGER, which indicates that long-term overbought conditions (generally when the oscillator hits 5 or more) are quite a ways off from here. -MD
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