Stocks Rally with Volume, Day 1
Posted on November 28, 2007
Filed Under Market Speculator |
Tuesday’s trade marked Day 1 of an attempted rally. During this current Market Correction traders have not been able to sustain more than one day of any attempted rally. It is important in order for a new confirmed rally to work that we get accumulation. Yesterday’s trade was the start of that, albeit volume was lower than 50dma. I would not be at all surprised to see the indexes move higher but, I would not be buying stock until this rally is confirmed.
I really do not expected to see a confirmed market rally. VIX and the CBOE Equity Put/Call ratio have not confirmed a substantial amount of fear at the bottom. What they do show is a higher level of complacency with those who are operating on the short side. If this rally fails to gain much steam, I would be looking to accumulating shares of QID. I would not make the position much larger than 10%, and will keep a boat load of cash. This allows me to purchase shares of fresh new companies breaking out when the next confirmed market rally occurs!
Market Speculator
Comments
Leave a Reply
