Market is rising but trading volume is low and has been declining.
Low volume suggests there are simply not a lot of buyers and sellers. Potential buyers are waiting for lower prices to get in. Sellers are waiting for higher prices to sell. So aggressive selling and buying are tapering off.
Taking a loss is difficult for most investors. Some investors are waiting for higher prices to "get even and get out". Look for these investors to start selling again, the closer they get to “even”. Some will lose hope and dump after they’ve suffered big losses.
Either way, we will see more selling than buying down the road.
(adapted from Bob Irish's Investor’s Daily Edge)
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1 comment:
"It's a trap!"
I definitely agree that there is no reason to be buying at this point.
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