Monday, September 28, 2009

09.28.09 - Trend-Day Monday


In spite of a rough overnight trade in Asia, the US and European markets finally got their bearings and caught a bid on merger news. Internals are extremely positive and advancing on an even keel.  Look at the steady slope of that dotted Cumulative Tick line in the second pane down. Low volatility in these readings is as important as their trend-direction and absolute level when it comes to identifying trend days like this.

Meanwhile, I am raising stops and will be watching the Intra-Day Sentiment measure (right) and Tick closely for any change in character as we go into the mid-day lull.

2 comments:

Anonymous said...

Jeff, Volume is very anemic. Any thoughts?

jgpietsch said...

I have been careful of letting low volume at sell off recoveries throw me. New money has too easily been baited in. There have also been some religious holidays, making it harder to interpret. Just need to be ready for sudden moves -- easy to push around. Best, Jeff