Consolidation Continues on Lower Volume
Posted on May 6, 2008
Filed Under Market Speculator |
A nice day of consolidation as stocks take another breathier. Two big news stories for the day did push stocks down as Crude hit another high and MSFT dropped its bid for YHOO. Both stories, on the outside would have seemed to be large negatives for the stock market. However, stocks slide lower on lower volume. A sign that the big institutions were not doing much of the selling. Our lower volume down days continue to be the theme, but we still need powerful days where price and volume are insync. Yesterday’s action was nice to see and I believe we continue April’s rally.
There are still many market pundits out there who continue to be bearish on this market. Real Money, Rev Shark in particular continue to let market opinions slide into their commentary. The fact is we have a market with volume higher on up days and lower on down. We have very little meaningful distribution in the market at this point. Big Institutional investors have just started to operate on the long side. We aren’t in the all-in moment, but it the action is certainly starting to set up like it will happen soon.
Look for longs.
Market Speculator
Comments
Leave a Reply
