THE PRAGMATIC CAPITALIST » » CHART OF THE DAY: WHERE IS THE VOLUME?

CHART OF THE DAY: WHERE IS THE VOLUME?

21 July 2009 by TPC 2 Comments

This needs no explanation:

* Thanks to DShort.com and reader Dean.

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BGray said:

I heard someone say on CNBC that low volume is actually bullish because it means people aren’t selling and that without buying frenzy it means the market has a lot higher to go. It kind of makes sense to me. People say without volume you can’t push the market higher but I believe the market has proved these people wrong. It’s a lot easier to push markets around on low volume.

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# 21 July 2009 at 1:54 PM

Frederick said:

BGray: Easier to push around on light volume? Without a doubt. But, that is sort of the point. The market has been able to be PPT’d higher(don’t forget that we are trading in the most heavily intervened market in history) because they can do it with little cash. Volume lends credence to a situation, though, which is something this rally lacks a bit. This rally has been like a a cruise ship with a capacity for 5,000 that set out to sea with about 14 people on board.