Volume Slides but Stocks Race Higher
Source: http://www.market-speculator.com/2008/11/25/volume-slides-but-stocks-race-higher/Posted on Tuesday, November 25th, 2008 | In Market Commentary
Contributed by: Market Speculator (http://market-speculator.com) -
Stocks move higher as shorts race to cover their positions.
This market continues to fool many people and will continue to do so. The lack of new highs being made by this market is a tell that we do not have a healthy market. Until there is true buying, and that is accumulation rather than low volume short covering induced rallies. Accumulation will be with days that stocks only move 2-3% with volume higher than the previous day. We have yet to see real accumulation in this market. I wouldn’t be stepping near too many stocks or searching for bargains. Losses need to be cut short and new buys need to be small.
Best of Luck! Brighter Days will be ahead, but it will take a long time.
MS
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 About Market Speculator (http://market-speculator.com)
Market Speculator began his market career shortly before 9/11/01. The methodology he uses comes from the greatest stock market traders of all time; Livermore, Darvas, O’Neil, Dryfus, etc. Decision making is based on price and volume while stock screening is done by growth in fundamentals. Much like William O’Neil’s CAN SLIM approach to investing Market Speculator focuses on a narrow amount of stocks and lives by cutting his losses early. |
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