Online Stock Trading | Low Volume Market Continues

Low Volume Market Continues


Filed Under Market Commentary |

Low volume continues to rule the market. Wall Street loves to take the last few weeks of August off and leave the trading to their junior staff. This is simply an ultra tough environment to find healthy growth stocks and make money! The past few Augusts we have seen follow-through days, but each one we get tends to get worse. Our most recent follow through is even more dismal than last year. Low volume, is a death trap for growth investors as they will lead to further selling. Stocks should be taken with a grain of salt at the moment and should not be accumulated heavily.

This market is terribly boring with the lack of nice charts out there. Most are simply filled with choppy price action and distribution. In addition, new lows continue to beat down new highs and now VIX is below 20. Our lovely market is not setting up for a tremendous bull market run. At some point, we are going to get selling that will see volume rise. We need a washout bottom, but I have no idea when or where it will occur. For a washout to occur, VIX needs to jump to 40-50 to signal capitulation or a washout. At its current level that is a 112% gain just to hit 40. Something that is not likely to occur but can. This market is extremely frustrating to those who are looking for action, the patient prudent professional will be able to hold out for a washout and strike when a powerful new bull enters.

Enjoy the rest of the weekend.

Market Speculator

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Comments

3 Responses to “Low Volume Market Continues”

  1. zstock on August 24th, 2008 11:03 pm

    I have shorts on CBE and GAS.
    I was just wondeering, are you on wordpress comment section? I can never find my other comments when I re-visit here, to see if you replied.
    It’s almost as If I need to start a log entry , day and site, on where I’ve commented.

    I like your Vix 40. That seems to be the consesus.

  2. zstock on August 26th, 2008 4:20 am

    I have a question about blogging. what web host do you use? They seem to be very reliable.
    I want to start a .com site. With all the templates I can have a way better looking blog, and the other half subscription. The subscription part might help to defer costs, or not. Who know’s.
    zee
    I think your template is wordpress .org, right?
    You should check out cocommenter if you are on .org

  3. Market Speculator on August 26th, 2008 5:48 am

    Hey Zee,

    email me at marketspeculator@market-speculator.com and I can give you some details.

    Thanks!

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