Comments on: Low Volume Bounce http://www.tasgall.com/2007/10/23/low-volume-bounce/ Peering into the Cauldron of the Gods... Wed, 28 Sep 2011 10:20:57 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Jason G. http://www.tasgall.com/2007/10/23/low-volume-bounce/comment-page-1/#comment-434 Jason G. Thu, 25 Oct 2007 01:55:10 +0000 http://www.tasgall.com/2007/10/23/low-volume-bounce/#comment-434 One other red flag despite today's midday recovery... breadth remains poor with about two declining stocks for every one that advanced today. The impact of breadth is important... for example, Apple has accounted for 34% of the return for the NDX year-to-date. Market cap weighted indexes over-emphasize the winners and can easily hide weakness across a larger number of stocks. It's also worth noting that the reversal / buying today hit at 2pm. Two in the afternoon seems to be the magic number in intra-day buying... If anything, today (Wed)'s dip and reversal shows how indecisive the market is, and how volatility is going to be a major factor which ever way the indexes go. One other red flag despite today’s midday recovery… breadth remains poor with about two declining stocks for every one that advanced today.

The impact of breadth is important… for example, Apple has accounted for 34% of the return for the NDX year-to-date. Market cap weighted indexes over-emphasize the winners and can easily hide weakness across a larger number of stocks.

It’s also worth noting that the reversal / buying today hit at 2pm. Two in the afternoon seems to be the magic number in intra-day buying…

If anything, today (Wed)’s dip and reversal shows how indecisive the market is, and how volatility is going to be a major factor which ever way the indexes go.

]]> By: Jason G. http://www.tasgall.com/2007/10/23/low-volume-bounce/comment-page-1/#comment-433 Jason G. Wed, 24 Oct 2007 02:53:05 +0000 http://www.tasgall.com/2007/10/23/low-volume-bounce/#comment-433 One of the big news points for tomorrow will be momentum favorite Amazon... earnings were lower than expected and the price is off by 10% in after-market trading. Of course, it was up 10% in normal trading today, so it's back where it was yesterday. This will be one to watch tomorrow as it could easily sway the mood in one direction or another. One of the big news points for tomorrow will be momentum favorite Amazon… earnings were lower than expected and the price is off by 10% in after-market trading. Of course, it was up 10% in normal trading today, so it’s back where it was yesterday. This will be one to watch tomorrow as it could easily sway the mood in one direction or another.

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