Dow logs 15th straight Tue of gains: Does it mean anything?

In an interview to CNBC-TV18, John Bollinger, Bollinger Capital spoke about the latest trends in the US market and his outlook.

Below is an edited transcript of the interview on CNBC-TV18.

Q: Those that look at the data and make trends of it say that Tuesday has been the best day of the week for the Dow this year. If we close in the positive on the Dow today that will be 15 straight Tuesday's for this year as well. Do those numbers mean anything to you?

A: The nature of statistics is that you can go in and find anomalies like that. In fact, if you don't find anomalies like that that is when you think that there is actually something there. A string of Tuesdays is interesting. What is more interesting to me is that we have had a fair number of negative divergences here and a fair number of pretty important sell signals over the past couple of weeks.

But the market really hasn't been able to make any downside progress. The internal condition of the market is actually pretty strong and even though we are seeing some negativity in the market, we are just not seeing any price deterioration. That is the name of the game.

Q: The last three days, even though we have seen fairly volatile markets, we seem to have closed in the positive in the US. Would you say it marks a breakout from the slump that we had seen in the previous two weeks?

A: There are two things going on here that people should think about. One, there is a lot of very high level rotation that is money sloshing around -- moving from group to group, from sector to sector -- trying to find where the next emerging bit of relative strength.

Remember, stock market investing in the US is not an absolute return game. It is a relative return game for most of the big players. So they are looking for advantage whether it is this sector or that sector. So there has been a huge amount of that rotation and that is why the market has been going sideways because there has been no real leadership.

The name of the game here is to try to spot those sectors and those groups that are emerging leadership and getting on those. Those are going to be the best sectors to be in when the market actually does take off.