Although today was a REALLY nice percentage rally in the markets, I left with a foul taste in my mouth. Definitely very little conviction in the buying. The volume is just not there. Obviously stock market movement is based on supply and demand; the market can move up (short term) because there are lots of buyers OR because there are no sellers. Over the long term though, there must be continual buyers in order to truly move the market up. Looking at today's action ... the selling stopped (which is good), but the buying hasn't started in force either.
With that said, it isn't surprising after such a hard decline over the past few weeks that investors are going to be gun shy for a few days, but if we don't have a stronger push up over the next 3 - 4 days, I would suggest selling further before the decline starts again.
As I have been saying over the past week, we are definitely over due for a rally, but I expected it to be short lived, today's story seemed to verify that analysis.
Buying could start and therefore we certainly could change to a bullish perspective, but all in all, I was hoping for more than what we got to.
A large price move says a lot, but without volume behind it ... it signifies that the big guys are sitting on the sidelines, and the big guys move the market no two ways about it...
I definitely left the day with a sour taste in my mouth ...
With that said, it isn't surprising after such a hard decline over the past few weeks that investors are going to be gun shy for a few days, but if we don't have a stronger push up over the next 3 - 4 days, I would suggest selling further before the decline starts again.
As I have been saying over the past week, we are definitely over due for a rally, but I expected it to be short lived, today's story seemed to verify that analysis.
Buying could start and therefore we certainly could change to a bullish perspective, but all in all, I was hoping for more than what we got to.
A large price move says a lot, but without volume behind it ... it signifies that the big guys are sitting on the sidelines, and the big guys move the market no two ways about it...
I definitely left the day with a sour taste in my mouth ...
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