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Understanding the Quiet Rally

It’s been one impressive rally…by some measures.  The indexes have made an about-face from the March lows, refusing to look back as they erase so much of the carnage of the bear market.  The move has been persistent and consistent…just a ton of green days.

But very few big days.  Have you noticed?

I’ve been amazed at the lack of volatility, especially recently.  It seems a huge day for the DJIA has become a triple-digit net change from the prior day’s closing levels.  Just a few months ago, we were getting gaps that big to start the day, nevermind the several-hundred-point moves which were commonplace.  Needless to say, it has indeed become a quiet rally.

In order to understand it a bit better though, I turned to an indicator to help make sense of it all, and I was surprised at what I found.

Different Directions

In the video below, I’ll walk you through my thought process that led me to doing this, and of course I’ll explain what it is that I discovered.  Of equal importance, you’ll understand how and why navigating this market for as long as this rally runs its course will require a different approach than what is ‘typical’ (if there is such a thing in the market).

Here’s a video explaining it. Select the HD option and go full-screen for best quality:

Thanks for stopping by and I’ll see you here soon with more. Until then…

Trade Like a Bandit!

Jeff White

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