Matt Blackman

Market Action: Have We Hit Bottom?

Toro, well done! It's great to read an article by someone who knows how to read the technicals and volume is a big part of the picture. I have also been concerned by the lack of volume on upmoves, especially in the bullish Head & Shoulders Bottom (H&SB) pattern on the Dow Transports that was confirmed Tuesday on the big upmove. However, the pattern should have exhibited much more volume on a break of the neckline to the upside which should cause any trader to question it (see seekingalpha.com/artic... )

By the way, in speaking to the folks at Bespoke, I learned that their research shows that all rallies in the last five years have been driven by short covering which is interesting. I would have thought that short covering was a much bigger factor in bear markets but that is not what they found...

Matt Blackman TradeSystemGuru.com