The very best traders ignore the newswires. When you hear talk of low volume, low volume rallies, low volume break-outs, low volume moves at major moving averages, etc. etc. it makes one believe that a reversal is imminent. Your ego whispers in your ear not to go long because the rally is “on low volume”;therefore, “it can’t last.” Can’t last indeed! Following are the news headlines since the beginning of the latest “low volume rally” that began the first week of February when most were convinced that the year long rally was finally coming to an end. By the way, since the first quote mentioned here on February 5 until the last one from today’s headlines, the market has moved an impressive 700 points on the DOW! Maybe we should all toss the volume indicator onto the LARD pile??
Hardly 1 billion shares exchanged hands this session on the NYSE, making for rather light volume.
Stocks finished at session highs in their best single-session percentage advance in three months as buyers returned from an extended weekend to offer stocks broad-based support, though with lighter than average volume.
Trading volume this session barely broke 1 billion shares on the NYSE.
Though the dollar’s final pullback brought buyers into the market, there didn’t appear to be much conviction behind the move. In fact, fewer than 1 billion shares traded hands on the NYSE this session. It marked the most thinly traded session in one month.
Trading volume was paltry once again as fewer than 1 billion shares traded hands on the NYSE.
Participation remains on the light side, however; barely 1 billion shares traded hands on the NYSE this session.
Cautious trade also led to light trading volume, which failed to surpass 1 billion shares on the NYSE.
Participation was paltry once again as fewer than 1 billion shares traded hands on the NYSE this session. The lack of participation is tantamount to lack of conviction, but also indicative of caution.
Trading volume remained rather unimpressive as little more than 1 billion shares exchanged hands on the NYSE this session. That has been a recurring theme, though. Specifically, trading volume this week averaged fewer than 1 billion shares per session.
Listless and lackluster action kept participants on the sidelines as stocks consolidated their recent gains. A lack of market-moving headlines and other trading catalysts also made for minimal participation. Investors and traders showed little willingness to step back into the stock market after it advanced more than 3% last week. In turn, hardly 900 million shares exchanged hands on the NYSE in what was this year’s second-smallest level of volume.
While the close looked strong, volume was unimpressive as fewer than 1 billion shares traded hands on the NYSE. Such a scenario is often considered a sign of little conviction.
This last one strikes me as ironically funny since according to the headlines there has been no conviction for over a month! You want to know what is really ironic? Those who have missed the rally because of the low volume conviction.
