As the market emerges from the ashes of last week’s plunge, the tone on Wall Street is starting to echo the opening credits of the bionic man… “we can rebuild it… we have the technology.” And they apparently also have the cash (way more than the 6 million dollar bionic price tag), as super charged computer buyback programs kicked into full force during Wednesday’s session.
After the bull’s successful bounce off the 200 day MA last Friday, lack of volume across the indices made it look like there just wasn’t enough steam to keep things rolling. Well, the big institutional bulls aren’t backing down that easily. Overall volume rose almost 20% and advancing volume at one point was the highest we’ve seen on the NYSE since last March.
Yes, of course the bears will attempt to short this rip as it hits the 50 day MA, but they may want to tread carefully as FOMO buyers are also eyeing that same line in the sand. And depending how many are waiting there with cash on hand, this market’s newly rebuilt legs may indeed turn out to be bionic. -MD
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