Monday, August 2, 2010

A Very Narrow Stock Rally

Daytrends reports:

SPX is above it 7/27 high, but only 26.7% of liquid stocks r above their prior 5 daily highs

1 comment:

  1. The low print of the S and P 500 occurred the split second the market opened and it never looked back. The S and P 500 launched 24 points (2.2%) and this was on top of the 6.88% move up for the month of July.

    A funny thing happened on the way to the market one showed up (except Jim Cramer and the Fast Money clowns). Based on the estimated volume at the close (3.4 to 3.6 billion shares), today's trading volume is in contention for the silver or bronze medal for lowest trading volume of the year. At the very least, it will be in the bottom 5 anemic volume days of the year.

    The slowest trading volume of the 2010 occurred on January 5th with 2.491 billion shares traded. The lowest 20 trading volume days on the S and P 500 all clocked in with less than 4.007 billion shares traded. FIVE of the 20 days (25%) occurred in July and today's romp will be in the slowest top 20 by a huge margin.

    Contrasting the top 20 lowest volume days of the year with the top 20 high volume days is mind boggling. The top 20 high volume days ranged from 6.137 billion to 10.617 billion shares traded per day. 9 of the top 20 high volume days occurred in May, the month in which the S and P 500 was down 97.28 points (8.2%).

    The bulls currently control the market however given the anemic volume, how many bulls are required before it is deemed a herd?