Tuesday, January 5, 2010

Trading Volume Continues Very Light

Stock market trading volume continues light, even lighter than last year, which was no record breaker. This continues to imply that stocks are "floating" higher (with very light money inflows) and any downward break will be very severe. Here's CNBC's Bob Pisani commenting on the light volume:

What's up with the volume? The NYSE Consolidated Tape volume (all trading in all NYSE stocks on all exchanges), was 4.1 billion shares yesterday, pretty anemic considering that we averaged over 5 billion shares a day in 2009.

At 2:30 PM ET today, volume was just over 3 billion shares, so we'll do better than yesterday, but just barely.

What's going on?

1) Many traders are still not back, which limits trading levels.

2) There's also a general lack of conviction about the direction of short-term trading. Traders note that those who got long at the end of Q4 and are just sticking with it...that we never saw real profit taking...so most are long and staying long.

1 comment:

  1. Is this really the actual volume though? I mean, it's just so tough to know what the true vol is when trades could just be moving more into these dark pool secret exchanges.