Tortilla Chip Wednesday, page-2

Tuesday Evening Liqueurs, 23 February, 2016.

XJO down moderately today -0.43%.

Volume was again very high. Arrium was part of that but not the complete story. I haven't been able to track down other sources of extreme high volume (pressure of time) but this volume today does look a bit extreme. The fact that it didn't result in a big fall is probably a sign of indecisiveness - neither bulls or bears dominating in the final result. A bit on the bears sign - but not a decisive victory.

Here's a Heiken-Ashi Chart for the XJO. The advantage of a H-A Chart is that it shows the nature of the trend. So we can have a down day, but H-A will continue to show a bullish trend. One day doesn't matter all that much. But continue to watch.



Bonds/Stocks Relative Strength.

This ratio is important in showing Risk-On/Risk-Off conditions:



For a very long time, you would have been better off holding Bonds rather than Stocks. That could be about to change, i.e., to a Risk-On Environment. Nothing certain yet. The Bonds/Stocks Ratio bounced a little today off the 50-Day MA. That's been the market for about a year for RiskOn/RiskOff. While the chart holds above that line, the market remains in Risk-Off. Stay with Bonds. A decisive fall below the 50-Day MA and then we'll be into a Risk-On Environment. Not there yet. Watch.

RB.