Rising price, falling volume...not bullish

David's faith · May 30, 2022

themickey said:
A couple of things..... from my experience....

When price climbs out of a bottom on low volume its often very bullish, this as, the bottom has most fooled, there's a reluctance to enter, cash is sidelined, price begins to climb a wall of worry, often imo, the climb is slow and long duration. The harder price runs from a bottom rally on high volume usually the quicker it fizzles out.

This is May, next few months usually a low volume and laboring market which doesn't pick up till November.

Bottoms are often volatile and very difficult to know what will happen next, usually TA doesn't work.
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Pure gold. Thank you.
I'd love to have you as a mentor. Especially in statistics and knowledge like the one you offered here

pavelonthefire · May 30, 2022

S&P500 is 6% up in the last 5 days. Is it a bull trap? Or the bear is over?

Overnight · May 30, 2022

pavelonthefire said:
S&P500 is 6% up in the last 5 days. Is it a bull trap? Or the bear is over?
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Bull trap until the Fed goes back to QE.

David's faith · May 31, 2022

Overnight said:
Bull trap until the Fed goes back to QE.
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I think it's bullish until the Fed beginns to down talk it again. FOMC notes stated only 3 rate hikes, Inflation still transitory, bullish to the tears.

murray t turtle · May 31, 2022

SunTrader said:
Up days need to be compared to prior up days and vice versa, and IMO more significantly up/down percentages. Just at looking increasing/decreasing volume is not good enough.
In baseball beating a bad team with a bad pitcher and many injured players out by 10 runs is less significant than beating a good team with a good pitcher and all key players available by 10 runs.
Need to be nuanced about it.
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%%
EGgactly + egg market which he called a top in\ is different from most any market.
Egg price$ hardly ever go down Monday \ like stock indexes \ETFs................

Rickshaw Man · May 31, 2022

I'm glad to see so many are so ignorant. This is wonderful.

Rickshaw Man · Jun 11, 2022

Rickshaw Man said:
It is what it is, rising prices with lower volume is not the most bullish of scenarios. We want to see just the opposite. Rising prices with ever-rising volume.

I noticed the FOMC has not updated its weekly balance sheet trend. It's typically updated Thursday evening. Don't be surprised if they stop updating it. They have done it before. Remember the FOMC said the will start reducing their balance sheet starting in June.

View attachment 285643
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OOPS

nooby_mcnoob · Jun 11, 2022

themickey said:
When price climbs out of a bottom on low volume its often very bullish, this as, the bottom has most fooled, there's a reluctance to enter, cash is sidelined, price begins to climb a wall of worry, often imo, the climb is slow and long duration. The harder price runs from a bottom rally on high volume usually the quicker it fizzles out.
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This is precisely the type of theories I think people should be formulating when trading. Well done!

Rickshaw Man · Jun 24, 2022

Here we go again.