4 replies to this topic

[Rogerdodger]

Alan Newman's Crosscurrents
http://www.cross-cur....net/charts.htm

This latest letter offers an explaination of the increase in volume since the market lows.
Says the current mania is similar to 1928.

"Less than 1 in 4 dollars is invested in stocks based on traditional economic analysis, wereas more than 3 of every 4 dollars are simply traded.

Program trading has increased 120% since the end of 2002.
ETF assets have increased 288%.
ETFs now apparently represent roughly 1 of every 5 dollars traded."

Edited by Rogerdodger, 11 March 2007 - 08:34 PM.

[James Quillian]

James Q: Crosscurrents is right up your alley.,

I guess I have an alley. Take a look at this chart. High ETF Volume has started correlating with market bottoms. IMO, at this time, all econmic growth both global and domestic is totally dependent upon the value of U.S. stock prices.

James

[n83]

see latest Barrons at the newsstand..see the article by Jim McTague..to the same point more or less on financial trading and speculation

[VolPivots]

James Q: Crosscurrents is right up your alley.,

I guess I have an alley. Take a look at this chart. High ETF Volume has started correlating with market bottoms. IMO, at this time, all econmic growth both global and domestic is totally dependent upon the value of U.S. stock prices.

James

Nice chart....similar to Sentimentraders liquidity premium. In periods of uncertainty, investors flock to the most liquid ETFs, I suppose in large part to hedge portfolios. Looking at put/call ratios and "liquidity premiums", everyone's hedged.....the world really is awash in liquidity nowadays....look at Rydex money market inflows (parabolic....)

[beta]

Thanks for posting this chart, James Q. Very interesting and helpful.

Further on the topic of extreme trading volumes, I also highly recommend reviewing the excellent work of Mortiz on the technicalwatch.com site posted today (not to be missed):

http://www.websiteto...post?id=1757816