Tuesday, August 23, 2011

Nice rally, ending near the highs of day...

...but the volume is not convincing. We need to see follow-thru the next (few) day(s) before we can really speak of a rally. Many leaders went up +5% and ended the day strong, just as the indices. But only a few had really good volume. That doesn't mean we can't go up more in the coming days, but without volume coming in, this rally has low chance of survival.

With stocks going up, silver and gold plunged while oil was up little. Euro vs. the dollar is still a choppy trade, better to wait for a clean break before taking any bets.

Hereunder a chart of SPY. It shows 3 buying opportunities, all good for nice gains. The lower trendline (under '1') connects with the highs of yesterday afternoon. With the earthquake in D.C., selling volume rose quickly, but soon the selling reversed as buyers evaluated the situation as being not that severe.

No comments:

Post a Comment