Monday, March 01, 2010
Midday Briefing for March 1st: Grinding Higher
Note how we've sustained price above VWAP (red line), building volume at progressively higher prices (blue arrow at right). All day long we've had only one reading of NYSE TICK < -800, suggesting that institutions have not been significant sellers all day long. Relative volume has been below average, creating a slow grind up. It's common to confuse such slow trade with a weak, topping trade, but as long as more stocks are ticking up than down over time, the path of least resistance tends to be to the upside.