All Systems a Go for Bulls
Posted on April 22, 2008
Filed Under Market Speculator |
Stocks show what your opinions mean in a market: NYSE short interest is at 5 year highs, Consumer Confidence at multi-decade lows, and Investor surveys are all bearish. The market does not care about opinions, that is why I follow price and volume action. What we’ve seen is a market that is increasing volume on the upside and continuing to decrease its down volume. Friday’s action was exactly want you want to see in an uptrending market.
Traders positioned themselves to be long over the weekend, but would stocks hold up or pull back on heavier trade? It would be important for stocks to either build on gains on heavier trade or pull back on lighter volume. Stocks did end up pulling back on lighter trade, ending the day consolidating last weeks gain. This is tremendously bullish for long exposure. Ideally, what we need now is continuing to build on the upside. Volume must come into play here on the upside. The big institutional buyers must step up to the plate and start accumulating shares.
I am not fully invested in this market just yet, if the Big Boys come in via volume and price action I will get more long. But for now, I need to see more volume! Go study the DJIA from April 1, 1938 through the summer!
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