If we live in a bullish world, what would you expect?
1. Up Volume to Down Volume would support a bullish view, i.e., if we have a strong day on the stock market, we would have a ratio of UpVol/DownVol strongly biassed to the Up Volume side.
2. Risk Aversion would be in evidence - Small Ordinaries would be stronger than the stodgy old, safe stocks in the 50 Leaders.
So ... what happened today.
The stock market was strong. Up 1.6%.
UpVol/DownVol Ratio was almost level at 1.06.
The SO/50-L Ratio was ... wait for it ... 0.72
These are big divergences. How will they resolve?
We shall see.
In the meantime, I'm making money on the long side - but I feel more and more that I'm in a game of "pass the parcel" with fewer and fewer participants.
Cheers
Red
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