Indicators the Disiciplined Investor is Watching to Start March 1

Mar 1, 2010: 12:47 PM CST

It’s already March 1st and the market is off to an early rally!

With a new week and a new month upon us, let’s take a quick look at some of the key indicators/charts that the Disciplined Investor – Andrew Horowitz – is watching on March 1st.

Today’s update is entitled, “An Apathetic Condition” (interesting title):

This week, Andrew writes:

“Volume is one of those indicators that cannot be ignored. It does not show an overbought or oversold signal and it does not oscillate. What it does do is provide a measure of conviction for a market and a better reading on investor sentiment.

Most recently, it almost seems that there is an apathetic mood as investors are awaiting for equity markets to break one way or another.

During that time (since December 2009), volume has been tapering off, unless it is a down day and sellers appear all too ready to dump shares.”

I concur – the boundaries are set and this morning’s bullish spike could continue the short-squeeze higher, but volume is key in assessing whether this is just a short-squeeze on low-volume (bearish) or if volume surges during the rally (not happening so far) which would be a bullish sign.

This week Andrew takes a special look at the volume and ‘internals’ underlying the rally, along with levels to watch.

Corey Rosenbloom, CMT

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