NYSE 'Volume' Lowest Since January 5

Monday is EOQ, yet the NYSE traded with the lowest volume since January 5. The correlation continues: low volume - market up; high volume - market plunge. Rinse. Repeat.

[click images to enlarge]



Also, in a complete failure for VWAP reversions, the early am shakeout on moderate volume was followed by a laughable lack of action at the day's highs untli the end of the the day, when, surprise, all the trading picked up in earnest in the last 10 seconds. What do you get when you cross Atlantic City with E-Bay? That's right - U.S. equity capital markets.



h/t Johnny "Knock Out Puts" Bravo

Comments

[doubleguns:]

We ought to make the trading day 10 seconds long. level playing field for everyone.

Jun 30 07:39 AM

[CLH:]

You are right --low volume market up. There is a lot of money on the sidelines so when it the market finally moves it will be up. Those in the market will not sell to the losers who missed the rally.

Jun 30 09:36 AM

[elcopone:]

Correct me if I'm wrong but couldn't this just be the classic "sell in May and go away" theory at work?

papers.ssrn.com/sol3/p...

Jun 30 10:17 AM

[conceptwizard:]

Risk, over-exposure, cheap money, shaky loans, a falling dollar, low reserves and a confidence deficit; these are the crumbling cinder-blocks upon which America's Empire of Debt currently rests. The possibility of a major disruption grows more likely by the day. Consider the world's 8,000 unregulated hedge funds with $1.3trillion at their disposal or the wobbly derivatives market and the effects that a sudden downturn might have. Kenneth J. Gerbino put it like this in his recent article “The Big Sell Off” on kitco.com:

“With a global market panic starting in a low interest rate and, so far, low inflation environment, one has to be wonder about the real reason for (Last Tuesday's) sell-off. Easy money almost everywhere leads to leverage and speculation. No where is this more prevalent than in the global derivatives market. It is not out of the question that third party defaults and risk aversion designed instruments that collapse and go sour may someday overwhelm the financial markets. Latest figures from the Bank of International Settlements: $8.3 trillion of real money is controlling $313 trillion in derivatives. That's 38 to 1 leverage. These figures are just for the over - the - counter derivatives and do not include the global exchange traded derivatives in currencies, stocks and commodities which are another $75 trillion.”

“$8.3 trillion of real money is controlling $313 trillion in derivatives!”

Jun 30 12:03 PM

[ain't no fo...:]

That's great leverage, eh? It has to make one wonder what leverage ratio the current Administration has been applying to jack the SPX up through their direct buys of stock via proxies GS and JPM, as they perpetuate the myth that everything is A-OK and that its time to get back to business as usual, so do what you do best mistur and missus consumer - just shop 'til you drop and save our sorry asses.

By virtue of this South-side hustle the Administration and its proxies has destroyed virtually all competition on the Street, and consequently liquidity, transparency, price discovery have disappeared, as well as that most precious commodity of all for their casino games to keep sucking in the rubes - TRUST.

So here we stand, staring at illiquid, dying markets, and to think they are otherwise is just plain naive.

Please Mr. Obama, give us back our markets.

Jun 30 12:46 PM

[RTF 360:]

I spent 15 years of my life on the hardwood in the Treasury bond pit at the Chicago Board of Trade.

Rule #1 never sell a quiet market.

Rule # 2 don't get too excited about a summer market, wait till the kids go back to school.

Jun 30 01:28 PM

[Fred Voetsch:]

I don't buy this totally because you need to make adjustments for the season. Still I subscribe to Lowry's and their data suggests that this is a weak market as well, partially because of volume.

If it's not a good time to sell (short) it's at least getting closer to a good time. ;-)

Jun 30 05:17 PM

[pepe:]

How smart do you have to be to realize; 1.Fundamentals are not strong.
2. Too many workers have lost 40% of their 401(k) savings.
3. Too many former workers have lost their jobs.
4. Too many people have lost their homes.
5. More taxes won't help a failing TARP adventure.
6. We're dumping dumping billions into car companies to build more cars that most people don't have the money to buy.
7. Things will get a lot worse before they get better.
8. Prosperity is not around the corner.

Jun 30 11:25 PM