I like to watch charts of stock prices with their trading volume. Trading volume has considerable information on the outlook of the stocks.
Example. I was reviewing the chart of IYT (the transportation ETF) since last September. I noticed two well defined patterns. Strong volume when IYT was around $90. The other strong volume days took place toward the end of January. This is a very important pattern.
Why? Because you see above average trading volume at bottoms and after a strong rally as IYT had in the past few months.
George Dagnino, PhD Editor,
The Peter Dag Portfolio.
2009 Market Timer of the Year by Timer Digest
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