ajtj99's Market Pulse

[dvdmogul]

AJ Said; "Furthermore, I have not seen any research utilizing volume tests of support and resistance, which is very key in determining whether the trend continues or stalls."

I agree its the missing information that always bites ya. At the heart of the matter is volume as its applied to intent over a time line against the relative constant of the markets gross float.

I know this is not what you guys do here, but as someone who works with this data in a way that operates outside the TA you are comfortable with, I am interjecting it here as background for your awareness.

Just like everyday TA showing this or that index or stock put up on this and every other thread as a chart, volume indicators are grossly oversimplified and not ever shown in relation to what is important.

To understand this, use the illustration of the bubble; as the bubble collapsed in April 2000 forward, the gross float of the market collapsed with it. This condition continues; and is being further exacerbated by cash coffers buying back stock and other public companies buying one another.On top of all this the principle of addition by subtraction asserts itself.

As the routine of the trade is now to play both sides of an attempted trend. Its accumulated a liability in the gross sense of the volume story complex. But the concern now, which must be discovered at the micro level, is the absence of volume.

To understand the absence of volume you need to get into the forest and look at each tree, go back to your shop and analyse the micro sense to project the macro. Volume or the lack of it casts a deep shadow over the routine of the trade, and is not all well understood.

NYSE is registering over the last years time frame as much as 55% Shorts to all sales, spikes in this data occur routinely. Yet Short Volume is not factored into any TA equations I've ever seen, yet it is impossible to separate from gross volume data by definition. In other words TA reporting gross volume, uncharacterized to any other facts of the market, macro or micro, is like presuming that because there is volume everything about the market is the same on any time line.

My intent here is benign, I use your TA routinely to overlay mine. In the interests of fair play, i offer the above.