Online Stock Trading | Fear Creeps into the Market; Volume Higher but Pathetic

Fear Creeps into the Market; Volume Higher but Pathetic


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Stocks remain in a viscous low volume environment.  Although stocks notched a distribution day on Wednesday volume still remained MUCH lower than the previous “up” days.  Technically, we have to call Wednesday’s action a distribution day but it wasn’t due in part to any large selling by the big boys.  Level III debt, Tier 3 debt, Sub-Prime, Alt-A whatever you want to call it was the buzz around the Street.  News flow is meaningless, just clogs price and volume action.  Which at the moment remains lateral.  Other than a wimpy distribution day, today’s action was again boring and untelling.

We did see a large uptick in the put/call ratio which hit 1.58 yesterday.  It seems options traders are abit skiddish about this market.  Any reading above 1.0 signals a level of bearishness, better yet FEAR in the market.  I can imagine option traders love headlines and are FEARful about the possibility of an economic slump, recession, or DEPRESSION.  I even see calls for the complete collapse of the US financial system.  Just remember, those who have knowledge do not predict, and those who predict do not have knowledge.  At any rate, the high put/call ration signals a level of bullishness in this market albeit with low volume!

Cash is King, any new positions keep them lighter than usual and work into a larger position as the stock proves itself to you.

Market Speculator

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Comments

One Response to “Fear Creeps into the Market; Volume Higher but Pathetic”

  1. Debt on The Finance World For News and Information Around The World On Finance » Blog Archive » Fear Creeps into the Market; Volume Higher but Pathetic on April 15th, 2008 12:06 pm

    […] Fear Creeps into the Market; Volume Higher but Pathetic …a distribution day but it wasn’t due in part to any large selling by the big boys.  Level III debt, Tier 3 debt, Sub-Prime, Alt-A whatever… […]

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