Posted on 04/11/2010 11:25:09 AM PDT by OCCASparky
Think Dow 11,000 is a big deal? Think again.
The Dow Jones industrial average briefly hit the milestone Friday for the first time in 18 months before closing at 10,997.
But Wall Street analysts who study key stock index levels say all the attention paid to 11,000 is more like a big distraction. They worry that investors are ignoring another number at their peril: The surprisingly low volume of trading. As stocks have risen over the past year, the volume reflects the vulnerability of a rally riding on the shoulders of relatively few participants.
And that's given pause even to the bulls.
"It worries a lot of us," says Wellington Shields' Frank Gretz, a technical analyst who specializes in pinpointing market levels at which stocks might suddenly rise or fall. He wonders whether the volume signals that the rally could soon peter out, like the big surges that preceded steep declines in the 1930s in the U.S. and in Japan more recently.
(Excerpt) Read more at apnews.myway.com ...
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Who would be buying stocks now?
So, put the $$$ into the markets to make the quickest buck.
All of us in retirement account ‘auto-pilot’ are buying ...
Exactly—Cramer and the other market pundits have been saying for months now that the only reason people are putting money into the American markets is because the foreign markets are either worse off, or in the case of China, on a bubble about to burst themselves. I haven’t seen this much reason to pull out and go straight into liquidity since the market crash of 1987. I’m no economist, but I don’t see how the market can sustain itself, particularly after the mid-term elections and into 2011 when taxes will skyrocket.
The US investor is tapped out or putting money in a mattress. The US financial system has become a joke due to the economically illiterate elites in DC.
Other than me, good question.
The DJIA is not a true indicator of our economy because it is too narrowly focused.
The truth about our entire economy is very scary indeed.
Our national economy is ashambles.
Union pensions are bankrupting states and are calling on the feds who are also broke to bail them out.
Government spending is bankrupting America and its future generations.
And the dems are to blame for it all.
Soros is up to something just like the huge scam he pulled off in the Hedge Fund market in 2008 to get his puppet elected.
exactly right.
Excellent article..Thank You.
The Plunge Protection Team?
I thought the only reason the DJIA was climbing was because the companies traded simply slashed jobs to the point at which they were making money once again.
FED=Bull
Skynet
Most likely, they are busy trading with each other, back and forth. Last week I read that Citigroup all by itself was 33% of the volume of one day. ONE DAY!! And only went up about, oh, 18 cents.
The market is VERY crooked. VERY, VERY CROOKED.
It is just plain evil what they are allowing, and are letting continue.
I trade futures,.....every day. There is absolutely no volume and hasn’t been for awhile. The market is up on vapor, pops come completely out of nowhere.
My thought and it is for what it is worth, is that it is the same mkt participants over and over. It is a wash, rinse, repeat cycle.
Last I heard, over 70% of Goldman-Sachs’ trading is proprietary.
It may be the actions of the Plunge Protection Team. That rumor has been around for several months due to low volumes.
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