Yesterday, I wrote about how the DOW’s volume probably can’t sustain the uptrend in prices for much longer.
As a metaphor, I said there was less breeze pushing up our kite.
Despite the brilliance of the metaphor, I had some questions about it. So, I’d like to clarify.
Take a look at the DOW’s volume average from October until now. It is slowly waning.
Although nothing is a certainty in the market, that decreasing volume can often be a prelude to falling prices. The DOW may soon correct (or, it may not). But, we should be ready if it does.
If we have long positions, we should tighten up our stop losses.
We should also keep our eyes opened for possible short opportunities.
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