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$DYM 24 hours, it jumped 16.9%, but trading volume was only 5.9 million U. At this scale, letโs be honest: itโs like tossing a rock into a small pond. The splash looks big, but it doesnโt hold up under scrutiny.
I usually handle this kind of rally in one of two ways: either I got in early, or I pretend I didnโt see it. The worst thing is spotting it halfway up the gainers list, getting excited and rushing in, only to end up holding the door open for the people who got in earlier. Everyone else celebrates while I fetch the drinks. Iโve done that before, and I donโt want to do it again.
If youโre going to look at it, check two things first: one, whether volume can keep up. With a market this sizeโ5.9Mโitโs far too easy for big money to move in and out. They can draw a candle to lure you in, then dump on you. It works every time. Two, whether the rally has any fundamental support, or if itโs driven purely by market sentiment and money flows. Until I figure that out, my choice is simple: if I donโt understand it, I stay away. Missing out doesnโt cost me money; getting it wrong does.
For now, Iโve put DYM on my watchlist. Iโm neither adding to my position nor shorting it. If youโre thinking of chasing it, first ask yourself how many points of a pullback you can tolerate.
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