Monday, June 6, 2011


Here are two charts that demonstrate what appears to be accumulation. This is what I look for when I want to pick a major bottom. Look at the volume.
TWM is a fund that is the inverse of the Russel 2000 index. It goes up when the Russell 2000 smallcap index goes down. Look at the increased volume since about February. Somebody with  some deep pockets expects the Russell to go down...

And then there is FAZ. This fund goes up when the banks go down. I featured it a couple months ago. Look at the volume. Higher volume on the up days, lower volume on the down days, while the ETF goes sideways. Classic accumulation. What is wrong with the banks?

See the rounding bottom, and then the breakout above $46.

Two good reasons to be wary of the stock markets....

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