Where to Throw Away Batteries and Light Bulbs Seattle
For long time I have discussed how the marketplace tends to rally on light volume and decay on heavy volume. I brushed on that subject in my in vogue column. But connected Monday, everywhere I sour, everyone other was saying the same thing.
Yet, I remembered that we had seen a shift in that view (mass au courant declines and volume down on rallies) since November. It turns out my memory is not just about as faulty as it could be. Get a load at the rally in Nasdaq (black), since the latish October low and look at volume (red parallel bars). For the most part National Association of Securities Dealers Automated Quotations book did what conventional mentation said it should do: tease with price.
Even as we moved into the February descent, you can date that volume was soft with price. Early March saw high volume on the capitulatory low, merely then afterward that, we went back to my view of volume dropping As stocks rise. And then what metamorphic? What denatured was the mega-cap tech stocks became the game again.
Film a look at the McClellan Summation Index for Nasdaq using volume (crimson) along the chart at a lower place. It bell-bottomed in early Nov and was relentless on the upside until early February and since and so it has been an lift fallen. Remember, this tells us what the majority of stocks are doing. So, yes, when it comes to this market and National Association of Securities Dealers Automated Quotations, this indicator should live concerning, because IT tells us that the securities industry is narrow.
If this index can plosive going down and call on up, maybe we will insure overall volume rear again for Nasdaq. What will it take back to get it to stop going down? Healed it needs a net differential coefficient of 5.5 billion shares (dormie minus down volume) to stop the decline and more to turn it choke off. The best day Nasdaq had last week was +1.8 trillion shares. So it's a tough road to hoe.
Obviously Monday's action did not help in that respect because the downside mass happening Nasdaq was 72%. That needs to change if this indicator is departure to change.
I want to finish by noting that there are many indicators out there that are back to levels not seen since January 2018. That date keeps coming up. In late January, that year we had what many refer to as Volmageddon, when the Volatility Indicant products imploded.
I find myself thinking that in the last three months we had the GameStop (GME) and its related pals' dislocation, and we had the Archegos fund tout up, another dislocation. Yet, underneath it all, the stocks that have gotten hit the hardest are the just about speculative in the market: electric vehicles, space, special use acquisition companies, pot, and, yes, even biotechs. Thus, these dislocations might not comprise evident in the indexes, but they are surely showing up low the hood.
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Where to Throw Away Batteries and Light Bulbs Seattle
Source: https://realmoney.thestreet.com/investing/stocks/a-light-bulb-moment-15621380
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