I was talking on the phone with a investor friend earlier today. He does not handle our small retirement portfolio just a friend that I picked up earlier in my life.
He told me that the MSM press keeps focusing their coverage on the stock market trading numbers but spend little time on volume. While the DJIA is rocken and rollen, now is the time to watch the volume year over year and then drill down to week over week, month over month and of course quarter over quarter.
He suggests as volume hits a stagnate period, not unlike a truck reaching the summit of the hill, volume will accelerate not unlike that truck going down the backside that aforementioned hill. So in essence volume will tell you when to get out of the market.
Volume can also be your barometer as to how deep the correction will be. So the crazier the volume equates out to the deeper the correction.
Interesting thought.
