Online Stock Trading | Consolidation Continues on Lower Volume

Consolidation Continues on Lower Volume


Filed Under Market Commentary |

A nice day of consolidation as stocks take another breathier.  Two big news stories for the day did push stocks down as Crude hit another high and MSFT dropped its bid for YHOO.  Both stories, on the outside would have seemed to be large negatives for the stock market.  However, stocks slide lower on lower volume.  A sign that the big institutions were not doing much of the selling.  Our lower volume down days continue to be the theme, but we still need powerful days where price and volume are insync.  Yesterday’s action was nice to see and I believe we continue April’s rally.

There are still many market pundits out there who continue to be bearish on this market.  Real Money, Rev Shark in particular continue to let market opinions slide into their commentary.  The fact is we have a market with volume higher on up days and lower on down.  We have very little meaningful distribution in the market at this point.  Big Institutional investors have just started to operate on the long side.  We aren’t in the all-in moment, but it the action is certainly starting to set up like it will happen soon.

Look for longs.

Market Speculator

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Comments

3 Responses to “Consolidation Continues on Lower Volume”

  1. zee http://z-stock.blogspot.com/ on May 6th, 2008 11:23 pm

    hey M. Spec.
    I’m going long and short until may 9th. Then on May 9th I’m going all short sell. I think Market corrects week of options expire. I don’t have any evidence, just the past two years, that’s when May correction has started.
    zee

  2. Market Speculator on May 7th, 2008 6:33 am

    z

    May 9th? All in short? That play is way over crowded already. Record high short interest at the moment and you want to get in on that crowded trade?

    If we manage to cross the 200dma on the major averages you are going to see a massive short covering rally develop. Many are drawing the line in the sand there.

    Tread carefully my friend…Long and Strong here!

  3. Consolidation Continues on Lower Volume | Investors Paradise on May 7th, 2008 10:18 am

    […] A nice day of consolidation as stocks take another breathier.  Two big news stories for the day did push stocks down as Crude hit another high and MSFT dropped its bid for YHOO.  Both stories, on the outside would have seemed to be large negatives for the stock market.  However, stocks slide lower on lower volume.  A sign that the big institutions were not doing much of the selling.  Our lower volume down days continue to be the theme, but we still need powerful days where price and volume … [visit site to read more] […]

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