Greg,
You comment that It's been the vol. that has bothered me along with this drop
I assume you mean the low volume. First, as I'm sure you know, no one ever said you couldn't get killed on low volume. Second, I read the low volume as the momentum morons (whose ranks sometimes include me) stepping aside because the stock had ceased to go up.
You ask, If we were to get this kind of vol. after the kind of downward movement we have been getting, and the stock closed unchanged, how would you classify that action?
Again, I'll assume your question was what a selling climax might look like. Most TA types would consider high volume on a down move but with a positive close as a selling climax, especially after increasing downside momentum. As far as my own opinion is concerned, it seems to me that stocks spend more of their time going either up or down and very little time changing direction, either at the top or bottom. Why try to call a small fraction of a stocks activity (the turn), when you can get better odds of success by waiting for a trend to be established then hopping on the band wagon? If the situation's too murky, then no trade's the best trade.
Best,
--Steve |
