Market Ramps Up on Disappearing Volume

Includes: DIA, QQQ, SPY
by: Tyler Durden

If you want to ramp the market, do so on low volume days when your strategy is the dominant marginal price maker. Enter Exhibit A.

It is no surprise, yet it should be a total shock, that the correlation between market volume and price moves has gotten to a 7 year low of -0.81!

Aside from a few machines that allegedly provide liquidity yet really just buffer the complete lack of volume, nobody has been buying into the rally. Statistically - this amount of incredulity was last seen in 2002. And in the absence of real buyers and sellers, gunning the market is easier than taking candy from a baby... and avoids those 202 caller IDs.

Another way to describe the data: large volumes on major down days, nominal volumes on increasingly lighter up days.