Posted on

You wouldn’t like me when I’m angry. – TVO MB 4-05

The jobs report delivered few surprises last Friday, but nevertheless, markets managed to log a solid across-the-board accumulation day. Other than a potential shake-out in the near term, the bear case for a “right shoulder turnaround” is evaporating more and more with each passing week.

Perhaps the most convincing argument against the enormously bearish Head and Shoulders pattern on the S&P and the Dow is that neither the Big Board nor the Nasdaq have developed such a pattern (the NYSE is not even close).

But this a volume blog, and I digress…

The Heat Gauge was firmly FRIGID for the majority of the session with the bulls keeping their composure, and thus staying in control. Yet, with things like the forever unresolved trade talks, Fed uncertainty, and a FOMO market ride that fails to take even a small break to let the retail investor on, there are plenty of folks channeling their anger in the hopes that the green monster will soon emerge and smash it all to pieces.

In trading, though, an angry approach will ultimately lead to anything but green in your account. Keep your cool and the trades will come… often a lot sooner than you’d expect. -MD

Sentiment: LIMBO – Markets are neutral and sentiment can go either way from here.

Volume: 2% – Today’s volume was higher than the previous session.

Real Feel: FRIGID – Bulls were in control of the session with a fair amount of selling under the surface.

Cycle: BULLISH III – Retail investors have bitten off way more than they can chew.

Portfolio: HOLD – The market is in a period of indecisiveness and the best place is on the sidelines.

Next Day Move: SIDEWAYS - The probability that SPY will close positive in the next session is 54%.

Want to read more? Join our list. It's free.

To view past positions check out our Trade History.

To find out what the indicators mean, visit our Market Volume Volume Barometer.

To learn more about market volume and 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.