Where’s the Volume?

As I type, I am sitting on the deck of a cottage over looking Lake Superior. Listening to the waves gently crash against the rocky shore below me, I am hard pressed to look at any charts. I don’t know of many places with more natural beauty than Minnesota’s Northern Shore. Maybe Yosemite, which I’ve been to at least 20 times and know better than the back of my hand.

I smartly did my weekend trading research Friday evening, before heading out on my weekend getaway. However, I couldn’t help but take a peak at the index charts again. The more I look at them, the more bearish my stance is. Take a look at the negative volume during this bounce. This is not the type of volume we usually encounter in a true downtrend reversal.

I am still hesitant to short the indexes. Markets have not yet worked off the oversold positions, and it’s always risky to enter short on during the bottom half of the oversold extreme. However, if the markets continue to merely drift higher on insubstantial volume, I will be more likely to go short via QID and SDS.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Blog at WordPress.com.

Up ↑

%d bloggers like this: