I’m not a Pollyanna or a perma bull, although being either would have made you fat stacks of cash over the last five or six years. The bears are still are making that broken, worn out “low volume” argument. If volume is low there aren’t any “real” buyers right? News flash…..summers are always slow and have been since I can remember.
The macro guys intellectualize every tick of the market and still don’t understand how the market makes new highs with a slow economy.
When sellers do show up, and they have on occasion to the tune of maybe 5% pullback, the volume is a little larger. The bears shout, “the volume is bigger on the downside”. That is fine, people take big profits in secular bull markets.
Back in 2008 when we crashed, every interplanetary being that held stock was selling at the same time. Remember Citigroup at $9 or $10? The stock was trading almost 2 billion shares a month before it did its 1:10 reverse split in May 2011. Bank of America’s volume was off the chart down at $3.
I think volumes will increase as the market goes higher into year end, as under-performing funds feel the need to play catch up. Animal spirits are starting to stir.
Just my opinion. I will be around with some setups later. Have a great Saturday.
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