Posts filed under “Technical Analysis”

Nasdaq Volume Decreasing

Barron’s Michael Kahn points out that Weak Trading Volume is Troubling for Stocks:

"In the stock market, fuel is trading volume. Without volume, a price advance
will soon slow down, if not stop and reverse. Momentum may keep trends going for
a while, but sooner or later the market is going to require buyers to put real
money where their collective mouths are and buy a lot of shares.

Chart watchers call this a bearish divergence as prices rise
while indicators, volume in this case, fall and typically it is price action
that adjusts.

The market has reached new highs but has done so on less
activity. It is a warning sign that something is not quite right with the rally,
but it does not constitute a sell signal on its own. Still, the fact that the
public is not buying like crazy, despite what the pundits are saying, is worth

As most people know, Wall Street is ripe with colorful sayings
and one that comes from the technical side is "In price, there is knowledge." It
is another way to say that all information is in price action."



Weak Trading Volume Troubling for Stocks
Barron’s Wednesday, March 15, 2006

Category: Markets, Technical Analysis

The Single Company Magazine Cover Indicator

In the past, I have warned against relying on the magazine cover indicator for specific companies. There are some very specific caveats on this here. The reason for this is that, in my experience, the Cover Indicator is useful for determining when large social phenomena are reaching an emotional crescendo. Oftentimes, emotions take over at…Read More

Category: Apprenticed Investor, Psychology, Technical Analysis

When the trend is not your friend

Category: Politics, Technical Analysis

Watch the Block Trades

Category: Investing, Markets, Technical Analysis

Bad Moon Arising

Category: Economy, Investing, Markets, Psychology, Technical Analysis, Trading

Chart of the Week: P/E Ratio: Cyclical Expansion and Contraction

Category: Technical Analysis

Qs Short Interest

Category: Markets, Technical Analysis, Trading

Understanding Fibonacci’s Relative Retracement

Category: Technical Analysis

10 Year Yield Makes a Run for 5%

Category: Fixed Income/Interest Rates, Markets, Technical Analysis

Why the Short Term Upside Bias?

Category: Investing, Technical Analysis, Trading