Lack of Volume Has Many Questioning This Rally
Filed Under Market Commentary |
Once again volume came in lower than its 50dma across the board. Even as oil receded the Institutional Buyers stayed away. They were not quick to jump on the stock bandwagon just yet. Big Institutional Buyers have simply stayed on the sidelines as ever Tom, Dick, and Harry try to play this market. Until we see any type of action from this players its tough to pin down market direction. However, at this point we do have volume on up days higher than on down days. Regardless of how much volume, it is still pointing to higher prices in stocks.
I still see folks over at Real Money.com bearish on this market. Most are simply saying that with the lack of volume we can not have much more upside left. However, the same can be send to the downside. If volume really isn’t here on either side, the direction remains flat. “Never short a dull market.” Why? Because volume hasn’t indicated where we are headed.
I am not ultra-bullish here, but I am definitely not bearish at all. I still believe a healthy level of cash 25-50% is the right amount to have in this environment. You need to have capital to deploy to sound growth stocks that are breaking out on above average volume.
Market Speculator
Last 5 posts in Market Commentary
- The Stock Market Battle - November 19th, 2008
- Stocks Rocket Off Multi-Year Lows - November 14th, 2008
- The Stock Market is Lacking Leadership - November 10th, 2008
- Stocks Crumble; Investors Look Ahead to an Obama Presidency - November 6th, 2008
- The Stock Market Awaits Election Results - November 4th, 2008
Comments
One Response to “Lack of Volume Has Many Questioning This Rally”
Leave a Reply













[…] Once again volume came in lower than its 50dma across the board. Even as oil receded the Institutional Buyers stayed away. They were not quick to jump on the stock bandwagon just yet. Big Institutional Buyers have simply stayed on the sidelines as ever Tom, Dick, and Harry try to play this market. Until we see any type of action from this players its tough to pin down market direction. However, at this point we do have volume on up days higher than on down days. Regardless of how much … [visit site to read more] […]