Volume slides as stocks close just off the highs of the day
Volume stumbles ahead of quadruple witching Friday, but stocks rebounded. Stocks began weak as a better than expected jobless claim figures failed to spark futures. POMO appeared to be the key driver for stock prices during the mid-morning hours. By noon time the highs of the day were essentially set in stone and stocks traded sideways for the remainder of the day. Volume was running higher throughout the morning, but as the afternoon wore on volume sank. Price action was solid with the indexes closing just off the highs of the session, but lacking volume does add a negative element to the day.
Not all days are going to be perfect as we would like it. Today would have been a much better day if we would have seen volume close higher. The market will need to blast into new high territory and hold. It is a positive these markets continue to hold their 10dma, a sign the uptrend is still intact. If we do experience any further weakening it will be a signal this market will want to undergo a correction. Remember, it is about your stocks and if you have laggards in your portfolio it is a good idea to remove them. Any new buys should not be large in size as we are late in this uptrend. Stay prudent.
Friday’s volume figures and early morning action will be dominated by quadruple witching. Volatility will certainly rule the roost during the first half hour of trading. Volume will more than likely run at lofty levels, but it will be important on how the market acts after the first half hour. For this uptrend to continue we’ll need to see the market hold its 10dma and push higher and closing at the highs.
Visa and Master Card were the talk of the town as the feds ruling on debt card fees. Traders took both stocks out to the woodshed as fears over credit card fees severely impacting the bottom line. Both stocks did not find a bottom. Many amateurs will find it tempting to scoop up these stocks because they are now perceived as a “bargain.” The probabilities are against you, could they rebound yes. However, the likelihood is these stocks are going to be suppressed for quite some time.
Have a great weekend and keep those losses small.
