Online Stock Trading | Stocks Rally with Volume, Day 1

Stocks Rally with Volume, Day 1


Filed Under Market Commentary |

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!

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