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Emotional buying
- Thread starter 99percent
- Start date
Frixxxx
Moderator
- Reaction score
- 131
Actually, very low volume today...Consumer Confidence only thing really holding today up.
clester
Market Veteran
- Reaction score
- 37
I don't even look at fundamentals with tsp. Or news events, or anything other than charts. One reason is that I could never out guess the markets reaction to those things. It filters out all the noise and you just play the chart in front of you.
99percent
TSP Strategist
- Reaction score
- 5
Is low volume Consumer Confidence? Or people feeling like they might miss out on something? The low volume is what gives me pause.
RealMoneyIssues
TSP Legend
- Reaction score
- 101
The low volume means minimal institutional investor volume. Most of the low volume rises are coming from the sheeple...
99percent
TSP Strategist
- Reaction score
- 5
Okay, then why are the sheeple buying? I believe that's who it is too.
RealMoneyIssues
TSP Legend
- Reaction score
- 101
Because Jim Cramer says to...
Along with every other institutional investor... trying to get the money that is on the sidelines in the market, so they can take it...
99percent
TSP Strategist
- Reaction score
- 5
Bullitt
Market Veteran
- Reaction score
- 75
Mom and pop might be getting in now, but for the most part the market keeps moving up on low volume due to high frequency trading.
I don't buy the cash on the sidelines thing because Americans either have a rainy day fund for a rainy day or have $30K and counting in credit card debt. Neither care too much to buy stocks outside of their regular bi-weekly 401k contributions.
I don't buy the cash on the sidelines thing because Americans either have a rainy day fund for a rainy day or have $30K and counting in credit card debt. Neither care too much to buy stocks outside of their regular bi-weekly 401k contributions.
99percent
TSP Strategist
- Reaction score
- 5
True. But I work with a lot of people who are in Target Date Funds. They set it and forget it. They don't change their contributions or allocations. Apathy. But I believe there is a lot of money on the sidelines.
RealMoneyIssues
TSP Legend
- Reaction score
- 101
So all those pundits that quote stories and studies about all the cash on the sidelines are full of... I believe they are saying that the sheeple are keeping their retirement funds in cash or bonds instead of the markets because they are scared about what happened in 2001 and 2008. Many of those folks lost half their money both times and they are just now getting back to where they were...
Thoughts?
- Reaction score
- 2,450
Interesting [up b/c of high frequency trading]. I never thought of that but I would think that the high frequency trading (HFT) would add to the daily trading volume? I wonder how light volume would be without these HFTs.
RealMoneyIssues
TSP Legend
- Reaction score
- 101
Unless that is the ONLY volume...
99percent
TSP Strategist
- Reaction score
- 5
Yipes! :worried:
JTH
TSP Legend
- Reaction score
- 1,158
I agree with Bullitt, High Frequency Trades are bringing in more trades, but the near-negligible scalping is not creating robust volume. Volume is the measurement of the momentum behind Price. Fact is, it's a new world we live in where volume has been declining since 2007, as illustrated by this yearly chart going back to 1963 where volume peaked in 2006.
Year Chart
View attachment 23600
The good news is that volume is still a useful indicator, but now days it should be measured with perspective. This is why I apply a 200SMA over volume, it enables you to spot the changes in trend.
Daily Chart
View attachment 23601
Year Chart
View attachment 23600
The good news is that volume is still a useful indicator, but now days it should be measured with perspective. This is why I apply a 200SMA over volume, it enables you to spot the changes in trend.
Daily Chart
View attachment 23601
Bullitt
Market Veteran
- Reaction score
- 75
Never said HFT was the only volume. Market goes up on low volume because of HFT's.
Sure many are afraid of stocks, but most are actually up and dancing to Ben's music because they got tired of holding out in .03% money markets. I'm sure quite a few got lured into gold and are getting hammered right now too. As for the pundits on TV.... well, they have to think of an excuse for why the market is doing what it is every single minute of the day when in fact it's the other way around. The market makes the news.
Sure many are afraid of stocks, but most are actually up and dancing to Ben's music because they got tired of holding out in .03% money markets. I'm sure quite a few got lured into gold and are getting hammered right now too. As for the pundits on TV.... well, they have to think of an excuse for why the market is doing what it is every single minute of the day when in fact it's the other way around. The market makes the news.
I pretty much set and forget my 401k unless I need a rare rebalance. Doesn't mean I don't have an interest- just means I know I'm not smarter than the market. I compete in other ways brother.
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