AI
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| Alias Born | 04/01/2000 |
Thursday, July 26, 2007 4:56:33 PM
I believe we had the highest volume ever today on the NASDAQ. Some might believe that this could signal capitulation and an ultimate reversal. That is possible but usually market bottoms are formed well after the high volume capitulation takes place at even lower levels with very low volume.
Look back at the bottom in 2002 to see what I mean:
Tops are formed with high volume and a great deal of daily volatility. Ultimate bottoms are often formed much later under low volume as there simply are too few sellers left for the market to go any lower.
Volume leads though for the most part. At this point I am hesitant to buy too much of anything until the selling has clearly slowed. An up day tomorrow would not be surprising but an up day of over 3 billion shares to erase today's greater than 3 billion shares of selling?
That will not happen.
RtS
Look back at the bottom in 2002 to see what I mean:
Tops are formed with high volume and a great deal of daily volatility. Ultimate bottoms are often formed much later under low volume as there simply are too few sellers left for the market to go any lower.
Volume leads though for the most part. At this point I am hesitant to buy too much of anything until the selling has clearly slowed. An up day tomorrow would not be surprising but an up day of over 3 billion shares to erase today's greater than 3 billion shares of selling?
That will not happen.
RtS
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