something I would like to share here.... over the past month, the Volume Weighted Average Price of the SPY index indicates that the bulk of the upswing has been done through low volume buying on the margin and from overnight gaps in afterhours market trading. The VWAP of the SPY through yesterday indicated that the real price of the S&P 500 would be roughly 56 points lower, or about 810, if the low volume marginal transactions had been netted out. And yet the market keeps on rising. This is an additional data point demonstrating that the equity market has reached a point where the transactions on the margin are all that matter as the core volume/liquidity providers slowly disappear one by one through ongoing deleveraging.Unfortunately for them, this is not a sustainable condition. I have kept all my longs until now but coming monday,tuesday I will go back to 100% cash regarding my swing trading accounts. I am looking to buy FAZ and go short HD,MET,NILE and QQQQ.
5 comments:
Nice trade!
Carl,
thank you for the week! I enjoyed your trading yesterday, Thursday. Val
Way to go! Nice week Carl.
Carl,
Need a log in to view chart list. Sorry to bother you.
Hello Carl,
something I would like to share here.... over the past month, the Volume Weighted Average Price of the SPY index indicates that the bulk of the upswing has been done through low volume buying on the margin and from overnight gaps in afterhours market trading. The VWAP of the SPY through yesterday indicated that the real price of the S&P 500 would be roughly 56 points lower, or about 810, if the low volume marginal transactions had been netted out. And yet the market keeps on rising. This is an additional data point demonstrating that the equity market has reached a point where the transactions on the margin are all that matter as the core volume/liquidity providers slowly disappear one by one through ongoing deleveraging.Unfortunately for them, this is not a sustainable condition.
I have kept all my longs until now but coming monday,tuesday I will go back to 100% cash regarding my swing trading accounts.
I am looking to buy FAZ and go short HD,MET,NILE and QQQQ.
cheers
Susn
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