As of last week, the Market Climate for stocks was characterized by moderately unfavorable valuations but mixed market action, with breadth and trends in general market indices favorable but deteriorating sponsorship on the basis of trading volume metrics. Though the market's advance appears increasingly tired, with most of the “good news” (specifically, that the news is less bad) largely out, and trading volume falling by the wayside. Still, when investors are feeling “left out” of a rally, it's often the case that there will be a few days of negative action, followed by a spike that recovers the whole loss in a single day, as speculators and short sellers fear missing out again. The behavior of trading volume on those spikes can be particularly informative, particularly if volume continues to wane. We'll see.
Click to read the entire comment
Click to read the entire comment
