Volume Drops As The Dow Breaks Its Winning Streak
A light volume pullback is what the doctor ordered and we finally saw a pause in the recent uptrend. The Dow needed to a break after closing higher for 7 straight days. It has been a nice run since last week’s election. A key point is certainly volume coming in lower across the board as a sign institutions were not selling shares. A few more days like this and it could potentially setup a few powerful setups. We will continue to comb through our charts and pin point proper signals. There is no need to be impatient and if this market is going to produce winners it will come to us.
We have all the ingredients coming together for a powerful rally. Who knows what we will get out of the Fed, but certainly what we are seeing is we could have a nice rally into the year end. We have three new long positions for today's open.
Commentary will be cut short tonight. We are busy working through our money management process and working our signals. Stay the course.