Bullish Mondays

I was looking at the Dow’s chart last night, tilting my head trying to decide if this is a new leg up or an exhaustion gap and something jumped out at me. This may be nothing, but it’s pretty interesting how Monday has been a very important day lately, which not only helps to set the tone for the week, but also can help identify the potential psychological intentions of traders.

Notice when we were in the thick of the selling at the beginning of the year we had some very notably high percentage moves to the downside and now we’re seeing the complete opposite. As this rally continues to pick up steam you can easily see how if you would have loaded up on stock at the close on Friday you’d be sitting pretty come the close on Monday. Obviously this isn’t the wisest trading strategy, but as long as Mondays continue to be extremely bullish, this looks like another leg up.

One thing I must point out about yesterday's rally is….where’s the volume?

Comments

[TraderMark:]

You are not satisfied with the government's volume? ;)

Jun 02 09:28 AM

[MKW:]

The so-called "Good News" which is attributed to sparking yesterday's rocket blast up is about the weakest I've heard yet to spark such a gonzo rally. Of course, "Good News" is a misnomer - I prefer "Slightly Less Apocalyptically Disastrous".

Jun 02 01:03 PM

[Hmm?!:]

Thanks Jeff. Good stuff.

And thanks also for not capitulating to the occasional outburst from the institutional establishment ( I think they feel threatened).

Jun 04 10:15 AM