I put a lot of importance on stock volume analysis. When price move is accompanied with good volume it is strong signal for me.

Current situation on US stock markets is good example. You can see like during correction period (approx. last 3 weeks) volume came down. Institutional investors (big banks, asset managers, fund etc) were not participating on these moves. They were waiting.

And therefore I did not believe rise of markets. And finally strong downtrend move happened on Friday. And volume picked up again. It is strong signal. Big investors are not in buying mode now. They are going to sell or short more. And they expect markets to drop much more.

It is totally what I feel . Therefore I made huge profits on short trades in last 3 weeks. Selective shorts worked very well. GOOG, AMZN, APOL are some of examples. And I want to short more, will wait for any bounce for good stock swing trade short setup.

This entry was posted on Sunday, March 2nd, 2008 at 4:34 am and is filed under Stock market chart analysis, Stock market comment. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.