6 replies to this topic

[A-ha]

There are bulls and there are cows...


I hope you were not one of those watching on the rails...



according to my data, volume on NYSE was all time high today... they are gonna take S&P to all time highs ... probably next week...

once it settles , thats gonna be the short of the century

Edited by xD&Cox, 22 June 2007 - 04:31 PM.

[eminimee]

[selecto]

"they are gonna take S&P to all time highs ... probably next week..."

Up 38. darn, now that's a fearless forecast.

[skott]

agree they'll take it up probably to dow 14000. doubt it will be the short of the century but it may be a decent one. short of the century comes later more than a year from now....... more than a year

[mortiz]

Friday's volume extreme was due to the annual Russell reconstitution exercise, which was the most active ever. Using Yahoo volume which includes trading volume for all exchanges, breaking the Russell 4000 (all US common Stocks included in the US Russell indices) in to four quartiles sorted by capitalization, here are the percentage deviations of each quartile's Friday volume versus their respective four year average volume: Quartile One (largest cap): 61% above 4 year average volume Quartile Two (next 1000 largest cap): 65% above four year average volume Quartile Three (2001 thru 3000th largest cap): 359% above four year average volume Quartile Four (smallest 1000 issues by cap): 222% above average of four year average volume Looking more closely at the components accounting for the huge increase in volume for the smallest 2000 cap US common stocks, many were issues under $1 who were deleted from the Russell 2000 and Russell MicroCap indices. As far as the record volume on the NYSE Friday, it depends on the data vendor, but according the Wall Street Journal NYSE volume, Friday's volume on the NYSE comes in 14th highest over the past 66+ years. What effect Friday's high volume will have over the next one to two months? Of course volatility, but I wouldn't be betting the farm on a 10% to 20% crash in prices quite yet. Randy N.

[HoseB]

High volume on a "mechanical" day means nothing.

[A-ha]

Randy, You the man. You are correct that. There was a tremendous volume spike in the last 30 mins on Friday and it was due to reconstruction. However, as you might have noticed, It artificially pushed S&P500 3-4 points lower. The market shall gap up 3-4 points on Monday and will probably have a reaction rally soon after. But my reasoning for a rally to new marginal all time highs mostly comes from other technical factors