Thursday, September 17, 2009

BULL MARKET? VOLUME IS COLLAPSING


Lots of annotations here, but I made comments while back on last bull market. We had nice blast off at bottom, but as we have gone along, volume has continued to dissapate, this is not normal bull personality, volume tends to increase and expand as more and more get on board.
You can also observe how the low was tested forming a SOLID BASE to rise from, this bullish action now is all MOMO DRIVEN.....and could collapse at anytime, IMHO.
A pullback that tests bottom IMHO is one that would not have us looking back anytime soon.
We had plenty of time last bull to position ourselves and make some good, less risky money. The persistant rise on low volume has me questioning this rally.
It's relationship to the falling US $ is one it hasn't had before. This kind of move would seem to be saying, growth? hell yeah and lots of it......IMHO not what you would expect from a financial credit debt bubble bursting.
D

3 comments:

Anonymous said...

How do you explain the almost 100% rise in INDU 2002-2007 on even less volume?

D said...

In the new world, program trading is taking over, IMHO shows even more manipulation from the larger "entities" lots of CHURNING HIGH voLUME TRADING.

That Bull started much slower my friend,but volume remained consistant, the pattern now is of falling volume...volume in general comapred to years ago is higher....its the pattern I am interested in...price can still rise with falling volume, is one of some concern however....shows the black boxes at work..we the littel guy control very little.

Anonymous said...

How about the rally from 1982-2000, that was even less volume. How do you explain that rise? And why does this market go up month after month with all your concerns including volume?