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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?


To: Kirk © who wrote (2057)11/9/1997 8:49:00 PM
From: Hank Stamper  Respond to of 42834
 
You Wrote:
Interesting. So what is the idea behind this? It would seem relative volume rather than absolute also as the volume today on a typical day is higher or similar to that of the Oct '87 correction. A pointer to some good reading would be great.

Low volume to me means "not alot of people are really sure what to do" or sort of "wait and see" .
-------

Yeah. And, low volume on falling values should mean that the people who think it is really good to sell have sold off all the stock they can sell off. I.e., the sellers are exhausted; their portfolios are empty and their ain't no more to unload. And, at that point, there aren't a lot of excited buyers out there. The bulk of buyers are really not sure if buying is okay so they are cautious.

David Todtman



To: Kirk © who wrote (2057)11/9/1997 9:43:00 PM
From: dougjn  Respond to of 42834
 
What low volume accompanied by a strong price movement suggests to me is that most players don't think the movement will last too long, but may have a ways to go....and are sitting it out w/a view to participating closer to the climax. Especially if accompanied by an obvious news event...that may not have long lasting economic consequence.

E.g. death of a President. Start of a war that doesn't look to last too long or threaten basic security (to those sitting out the spike on the sidelines.)

Regards, Doug