Volume question?

Ato · 6 August 2009

To find the market price of a stock does there need to be a large volume trade day to establish that market price? Eg, if a stock is being sold and the market price seems to bounce around a bit, is it better to wait for a large volume day to see what the market prices the stock at?

And, if a stock rapidly increases in price without a large volume trading day, what does that mean?

If a company puts a whole bunch more stocks on the market, I assume that will cause the price of the stock to decrease?

beamstas · 6 August 2009

Ato said:
To find the market price of a stock does there need to be a large volume trade day to establish that market price? Eg, if a stock is being sold and the market price seems to bounce around a bit, is it better to wait for a large volume day to see what the market prices the stock at?

And, if a stock rapidly increases in price without a large volume trading day, what does that mean?

If a company puts a whole bunch more stocks on the market, I assume that will cause the price of the stock to decrease?

1. No

2. No demand

3. Not neccesarily, intrinsically spreaking, there are more shares, but the market cap increased by a relative amount, so an economists "valuation" would remain fairly similar... not that that market really cares about value.

Naked shorts · 6 August 2009

Ato said:
And, if a stock rapidly increases in price without a large volume trading day, what does that mean?

No sellers

tech/a · 6 August 2009

Naked shorts said:
No sellers

Agree-- no supply.

ceasar73 · 6 August 2009

agree with the others - no sellers.

check out DUI. went up 9% yesterday with no demand.

how? no sellers.

just one trade!

ceasar73.

Ato · 7 August 2009

Goodo, thanks.

How about what is going on in the US? There seems to be large rallies with little to no volume? Is that something to do with manipulation like some people mention, and if so what does that mean exactly?

cutz · 7 August 2009

There's nothing sinister behind it, it's just the simple fact that there's an imbalance on the buy side, stocks are rallying with little or no resistance.

Should be interesting to see what happens when the real action starts, ( if and when the bears come out of hiding )

ThingyMajiggy · 7 August 2009

Ato said:
Goodo, thanks.

How about what is going on in the US? There seems to be large rallies with little to no volume? Is that something to do with manipulation like some people mention, and if so what does that mean exactly?

Large rallies with little to no volume? Appears to me as though there was quite a bit of volume, especially 4th of August, supply hit the market, which will need to be tested I would say.

As far as rapidly moving up on no volume, depends whats in the background for me

Naked shorts · 7 August 2009

Ato said:
Goodo, thanks.

How about what is going on in the US? There seems to be large rallies with little to no volume? Is that something to do with manipulation like some people mention, and if so what does that mean exactly?

I think if there was some kind of manipulation going on (which, can only be done by the government), you would see areas of extremely large volume spikes (as the whole market starts to sell into the buying), before the price action powers on upwards which would be on very little volume (the whole market covering shorts), then a large volume spike would appear again (whole market selling) and so on.

Of course, the size of these volume spikes would be bigger then anything we have seen on the way up so far.

explod · 7 August 2009

The volume was very high on the Dow when it hit the low in March. The sheep sell at the bottom. Hower volume tells many tales, sometimes those you want to see, but hopefully the facts. As the dow has risen since March the volume has been tapering off fairly evenly and is about 3 thirds of March now. It has risen a bit the last 2 days and the candles on the chart look like a reversal may be near.

Volume question?

Ato

Ato is credit to team

beamstas

Naked shorts

tech/a

No Ordinary Duck

ceasar73

Ato

Ato is credit to team

cutz

ThingyMajiggy

Naked shorts

explod

explod

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