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Thin Trading

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March 22, 2010 – Comments (4)

This is the second time I have read about how thin the trading is on this market rally.

  [Citi, Wells Fargo, Bank America....] are 80% of all trades in the market and the total market volume is less than half of what it was back then. In other words, you’ve got half the market participation of what it was and of that half, 80% of it is concentrated in less than half a dozen financial firms.

So, retail market participation is 10% of what it was? (20% of 50% = 10%)

Sounds like ideal investing conditions to me -- not... 

4 Comments – Post Your Own

#1) On March 22, 2010 at 9:55 PM, starbucks4ever (98.07) wrote:

These are conditions typical for the parabolic stage of a bubble. The parabolic stage is the most fearful of all. But also, more than half of the bubble's profits are realized in the parabolic stage.

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#2) On March 22, 2010 at 10:48 PM, sentinelbrit (85.96) wrote:

I'm not sure thin volume is all that it is cracked up to indicate. It seems that the phrase has been a constant refrain throughout the rise in the market. Breadth has been pretty impressive. Small caps have continued to be at the forefront of the advance. As Bill Miller was reported saying the other day - the market may suffer a 3-5% pullback but if profits are going to grow by 25% this year that indicates the economy is going to recover, and the market can move higher.

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#3) On March 23, 2010 at 2:28 AM, dwot (65.40) wrote:

This is priceless

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#4) On March 29, 2010 at 2:16 PM, maxvol (< 20) wrote:

:D nice video

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