Since the end of July, markets have been in a distribution phase… even though prices continued to climb. How do we know this? By looking at volume. TVO, our volume oscillator, started sinking on 7/31 and fell below zero on 8/7 shifting our General Investment Strategy into SELL mode… just 3 days before the big drop last Thursday. The reversal on Friday may not have seemed like much on the surface, but a CHILLY HG shows that buyers are back in action with the Nasdaq leading the way. And with many of the major indices sitting right on their 50 day moving averages (The Russell is on the 200), despite all the rhetoric and news, folks may want to rethink their short positions before those buy programs kick in. -MD
To view past positions check out our Trade History.
To find out what the indicators mean, here's our TVO System Dashboard Terms Explained.Login. Not a Member? Join us.