Friday, February 05, 2016

ICBM's only run on solid rocket fuel, as do stocks............

My opinion on the market is primarily a function of the hundreds of individual charts I look at throughout the day.  When I see a large number of stocks moving on volume increases I take note.  Volume is key to my decision making.  I need institutional demand on my side. When the big players are piling in it gives me greater confidence that a meaningful price move will produce some upside momentum.  I think of volume as the rocket fuel that drives a stock.

It doesn't matter how good a stock is if it doesn't have the rocket fuel.  Volume shows ignition.   Spring follows winter.  Keep your powder dry. 

It's a nasty environment out there.  Thank you Bernanke, Geitner, Yellen, the Fed, Congress, etc............ We are in a bear market.   That said, the risk of a massive spike upward is possible before we resume the inevitable downside due to central bank printing.  

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