There are two patterns in trading volume. Rising volume in a rising market and rising volume in a declining market.
The favorable pattern that has been taking place since the end of September is rising volume in a declining market. Let me explain.
Investors sell as the market declines. Selling increases with the severity of the correction. Stocks, meanwhile, move from weak hands to strong hands. Eventually sales dry up and the bottom takes place.
More, much more when you subscribe to The Peter Dag Portfolio by going to https://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
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