Saturday, March 29, 2008

Lacking Volume

As many of you know I am a volume freak,whether it's regarding individual stocks or the indexes and there has been poor volume this week. This is a note from Alan Farley, a technician I occasionally read.

Volume has been just pathetic this week, with some of the lowest readings of 2008. This, despite all the happy talk after the post-Bear reversal AND positive seasonality from quarterly window dressing.

The SPDR Trust (SPY) has posted 30 sessions this year in which daily volume has exceeded its 60-day moving average. 20 of these days were selloffs, while just 10 were rallies.

Not one trading day of the last six has posted volume (in either direction) higher than the moving average


About Me

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I am a former hedge fund manager, broker and capital markets dude who now trades for his own account. I love what I do. I will try to post some stocks and an occasional chart that looks attractive for entry.I will also try to point out the idiocy of conventional wisdom and the lack of value added by the mainstream financial media. These postings should not be viewed as recommendations.