As this will make a difference with respect to the Market Direction Model buy signal issued at the close, we note that as volume levels adjust after-hours on the major market indexes that volume is actually LOWER than that traded yesterday, which would disqualify today as a Follow-Through Day and a Market Direction Model buy signal. Stay tuned for further emails as this develops, and keep in mind that the model is not a short-term or day-trading tool - it is intended to identify intermediate- to longer-term trends, so that if a few percent are in fact lost on a bad sell signal, it may be that the next buy signal is the one that produces a large gain if a persistent and viable market trend develops. That is the point of the model. In the meantime, we have identified a number of buyable stocks over recent days in the face of the sell signal, since it is possible to focus on leading stocks while excluding the action of the general market in certain environments.
MDM - Volume Levels Adjusting After-Hours Indicate No Follow-Through
|Published:||1 Dec 2010 21:31 ET|
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