32 replies to this topic

[U.F.O.]

darn skippy. IMHO.....Low volume rallies are never a positive. (1 chart)

U.F.O.

[U.F.O.]

Trading a rally....."When volume starts to fail.....it's time to bail."

U.F.O.

[selecto]

"Volume precedes price" has to be one of the oldest market axioms about. Clearly, a technician should anticipate a leg change as volume begins to dry up in a trend. Be alert, Skippy.

[U.F.O.]

LOL! Have a great weekend selecto. U.F.O.

[James Quillian]

One more thing about volume. If central banks are participating directly in the stock market, and I think they are, then low volume makes it super easy to goose equtiy prices.

[U.F.O.]

James, I think you're correct, but IMO the PPT is only involved on a limited, periodic basis. After Y2K and 9/11?.....absolutely. Every day? Nada. "Central Banks", however, are required by law to post their security trades daily. No guesswork here. U.F.O.

[Rogerdodger]

My decrepit memory seems to have a faint vision of a holiday period (Thanksgiving I believe) where volume was low and "they" pushed it up to and thru resistance. I didn't believe it because of the volume and lost some $$$. Well maybe only $$. Watch out for "THEY" and "THEM". Remember that the PPT has friends. Each company can buy their own stock anytime including low volume days. As MSS says below: The key here is TIME over which price and volume is occurring.

Edited by Rogerdodger, 07 July 2007 - 09:39 PM.

[U.F.O.]

Rog, the "They" are troubling.....aren't they? As long as we can get on the correct side of "their" markets....we'll be A-OK. I still think we overstate the degree of control these nondescript market mavens have. IMHO we, as a group, tend to blame our trading failures on others. What better scapegoat than the Govt.? IYB has written volumes on this subject here at FF. Many don't even believe in the PPT. I do, personally. U.F.O.

[James Quillian]

James, I think you're correct, but IMO the PPT is only involved on a limited, periodic basis. After Y2K and 9/11?.....absolutely. Every day? Nada. "Central Banks", however, are required by law to post their security trades daily. No guesswork here.

U.F.O.

There is one thing of which I feel certain. the official organization, the President's Working Group on Financial Markets (PPT) has not done anything lately.
All that must done can be accomplished with a nod and a wink.
Suppose that it was silently understood that the dealers who get the Fed's business are the ones who funnel the money into the equities markets.
It remains a mystery why M3 continues to expand while M1 has actually dropped over the past several years. How many people stop and ask, what would happen to the U.S. economy if the stock marketd corrected?
Monday morning the bids will be there to support the market.

James

[U.F.O.]

I respect your opinion, however, Monday morning I'm going short techs. RYDEX.....come to Papa! U.F.O.