Re: Volume
Great improvement!
May it keep improving. The total dollar volume still lags though behind where it once was.
The average share volume has been trending lower for a year, so anything like this past week looks great.
Total dollar volume for today: $55 times todays volume 946,000, equals $52,030,000.
Just about every day 1 year ago in July and August 1999 in comparison, the volume exceeded 1 million, while the prices ranged between a low at this level and about $90.
In December 1999, average closing price of about $86. Average volume, 870,000 (with a nice string of well over 1.5 million with the stock in the 90's) $86 x 870,000 = $74,820,000.
In March of this year, before the meltdown, average volume was about 620,000 with an average closing share price of $87. $87 times 620,000 equals $53,940,000. (This slowing down without breaking out was another big warning sign in hindsight)
The point is, the money flow and volume would look a lot better if the trend gets back to the total dollar volume of months ago and 1 year ago. Volume simply on the face of it can be deceptive. When prices are (have been) higher and the volume goes up an equivalent percentage, it indicates increasing money flows. The opposite holds true.
Ideally, the average daily volume should still be 30-50% or more than what it is here, since the stock price is so much lower than when volume was performing better. Lets hope the recent improvement can sustain and improve even more on itself. |
