TVO Market Barometer 9/22/17: Let the trades come to you

If worry or fear has dominated your trading approach recently, you may want to take a closer look at volume. From that side of the coin the story has a tone which is very much the opposite. And what’s referred to by looking at volume is getting a read on what the big institutions are doing.

Since 9/5 the market has been virtually devoid of any kind of institutional distribution, and TVO, our volume oscillator, is showing this by holding steady in BUY mode (between 0 and 3.0) for almost 2 weeks now. That is not say that a little turbulence can’t steer this in the other direction, but heavy selling at this point would only be the tip of the iceberg of any significant reversal.

How long will it take to turn the bus around? Well, it could be a lot longer than what most folks expect, but when comes to the market, one thing is for sure… The way the market goes is completely beyond your control. If you find yourself bored or frustrated by lack of signals and setups lately, you’re not alone. One of our members expressed their concern and here’s how I replied:

The TVO System is long-term and designed to build account capital over time. It would be nice if there was a way to evenly distribute the signals from month to month, but the reality is the market is far too erratic for that to happen. Sometimes there will 1 or 2 trades stretched out and then there could be 5 or 6 consecutive ones closer together. In my experience being able to deal with that kind of sporadic nature is how market timing works.

Many other services force trades on their subscribers so that they feel like they’re getting their money’s worth. The truth is there are times when you just shouldn’t be in the market and that’s where the TVO System really outshines the others. If you had spent the last month overtrading and trying to navigate all the whipsaw moves and volatility, you could have potentially lost much more just than the monthly fee that services charge.

In that way there is a distinct value in knowing when NOT to trade.

Give it time and let the trades come to you and hang in there… And above all don’t be controlled by worry or fear. The market is constantly changing and opportunities are always waiting just around the corner. -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.

To learn more about market volume, The Total Volume Oscillator, or How We Trade, find us on Twitter (@TradingLicks) and StockTwits!

The indicator descriptions in the above graphic represent general market sentiment. The actual TVO System signals and trades are listed below in the Members Area. To view, please . Not a Member? Join us.