To Edwin Peters Re: intraday price swings
Edwin,
Here's a little more information for you:
Over the past 125 trading days, the average difference between the high and the low for the day = $1.21 . Relating this to volume, in order to reach some conclusion, is difficult. Looking at the numbers, it does look like the spread is greater on higher volume days, but there is definitely no definitive pattern here. The preponderance of days with spreads over $1.21 do occur on days where volume exceeds 3.2 MM, which is the average volume over this period of time (taking out the 3 trading days where volume exceeded 10 MM shares, the avg. was 2.9 MM over this period)
Obviously, trading on Monday and Tuesday skews the average quite a bit, which would be expected.
What I am saying is that per this empirical evidence, your conclusions are most probably correct re: the volatility vs. volume relationship. Going forward, who knows if this relationship will continue, but it probably will.
Regarding your conclusion of portending movement real soon, I believe the two are unrelated. Should this week prove to be a "base building" in the price, then we should (all other things being equal) indeed see an upward movement shortly beyond the prior highs set last week. "Should" is the key word here.
Thanks for your posting. |
