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In micro-analyzing today's trading, I would recommend taking into consideration the number of shares traded compared with the average daily volume.
As I write, the volume is showing 86,400, in contrast with an average daily volume of about 300,000.
Sparse volume seems to play into the hands of the MM's thusly: There always will be *some* people selling for *some* reason. Thus, even when there is "nothing going on," there always will be a small number of shares changing hands.
But there is no opposite rule. In other words, the only people who buy are those who want to buy ... are motivated to buy ... and are motivated with a sense of urgency to buy *right now*.
So my hunch is that at a daily rate of less than several hundred thousand shares, it is being driven primarily by sellers (even though there is no sell-off occurring) and that there just aren't a lot of buyers with a real "gotta have it right now!" perspective at this point.
And that plays right into the hands of the MM's who, of course, can see every bid and every ask sitting right there on their screen.
Short answer: Yes ... we really do need some new buyers. Brand-new ones. People who just gotta have TSIS right now.
Alternative interpretations welcomed.
JSb |
