Stocks Jumped Higher But Volume Was Mixed

The low volume theme continued on Wednesday as stocks got a mild boost but volume ended mixed. NYSE volume fell while the NASDAQ (^IXIC) saw increased trade. However, volume again was under the 50dma signaling the lack of interest in the market.

At the end of August we cannot expect volume to soar but it appears that Wall Street has collectively taken a vacation. The lack of buying interest has me handcuffed with taking large positions in any type of stock.

Low volume environments can easily whipsaw you out of a position and more dangerously wipe your account out. I fully expect this week to carry on much like it already has, our low volume movements will stay with us and September hangs in the balance.

I can wait patiently for the next bull market, but many sadly, will not be able to be as patient as I. Human nature craves action and inaction can be viewed as “wrong.” Stock speculation is an old sport, luckily, if you have studied history, you will know that periods of inaction and waiting for a strong trend is the wise thing to do.

Certainly, there are a select view who can exploit small movements in the market over a long period of time but those are too few and far between. Odds are not in your favor when you are daytrading, the house always as the odds. I want the odds in my favor and the better the odds the more I bet.

I am looking forward to the long weekend, labor day weekend. College football is starting up and the NFL is right behind it. Enjoy!

Posted in Categories: Contributor, External Research, Stocks, USA.

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