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Sell Off on Light Volume

Posted By Barry Ritholtz On April 17, 2006 @ 3:48 pm In Markets,Psychology,Technical Analysis,Trading | Comments Disabled

Just a quick note: despite all the red on your screens, the selling
seems to be on rather modest volume. That suggests more of a buyers
strike than a heavy distribution day. Both the advance/decline line and the
up/down volume are modestly lower — not particularly nasty — also.

Remember that most of the European Bourses are closed for Easter Monday (I believe some are closed tomorrow also).

On a somewhat related note, on Cody Willard’s blog [1],
he discusses the futility of trying to game the Fed on a day to day
basis. That’s an excellent point — not only for the Fed, but for most
economic data. The broader economy is marvelously complex, and its
oscillations and cycles unfold over periods of quarters and years –
not day-to-day.

Unfortunately, us humans have a hard time operating on longer time
scales. Days and weeks are easy; years and decades are almost
impossible . . .


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URL to article: http://www.ritholtz.com/blog/2006/04/sell-off-on-light-volume/

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[1] on Cody Willard’s blog: http://www.thestreet.com/p/rmoney/codywillardblog/10279545.html

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