I was looking at the Dow’s chart tonight, tilting my head trying to decide if this is a new leg up or an exhaustion gap and something jumped out at me. This may be nothing, but it’s pretty interesting how Monday has been a very important day as of late that not only helps to set the tone for the week, but also identify potential psychological intentions of traders.
Notice when we were in the thick of the selling at the beginning of the year we had some very notably high percentage moves to the downside and now we’re seeing the complete opposite. As this rally continues to pick up steam you can easily see how if you would have loaded up on stock at the close on Friday you’d be sitting pretty come the close on Monday. Obviously this isn’t the wisest trading strategy, but as long as Monday’s continue to be extremely bullish, this looks like another leg up.
One thing I must point out about today’s rally is….where’s the volume?