Big market advance, low conviction.
Benjamin Graham, the father of value investing and mentor of Warren Buffett, often called the market a “voting machine”. If so, marekt volume must be the ballet box. Yesterday, the bulls had a big victory in the primary. However, hardly anyone showed up to vote as investor turnout was low. Notice chart 1 below showing yesterday’s advance was on extremely low capital weighted market volume.
CHART #1
Capital Weighted Indexes created on StockFinder, subscribe here: http://volumeanalysis.com/ & click StockFinder.
Market volume is money searching for a place to reside. There are only two reasons investors choose to trade. One is to seize an opportunity. The other is to reduce the risk of being positioned on the wrong side. Yesterday’s the bulls (oppurtunity) may have won the primary but they certainty did not raise much support from institutional sponsorship.
VPCI “V” bottom watch
Despite the big up move in price action yesterday, the VPCI has yet to turn up. Thus our VPCI “V” bottom capitulation signal has yet to make an appearance. See chart 2 below.
CHART #2
Capital Weighted Indexes created on StockFinder
Definitions:
Capital Weighted Volume – This is the true volume of an index. It is calculated by summing the volume of each individual index member in proportion to its weighting the index.
Capital Weighted Up Volume – The capital weighted volume of securities closing higher.
Capital Weighted Down Volume – The cap weighted volume of securities closing lower.
Cumulative Cap Weighted Volume – A running total of the cumulative net of CW-Up versus CW-Down Volume.
AVSL Anti-Volume Stop Loss – Proprietary formula taking into account support, volatility and the inverse of price-volume’s asymmetrical relationship.
VPCI Volume Price Confirmation Indicator – measures the asymmetrical relationship between price and volume over the course of time and trends.
VW-MACD – Volume Weighted Moving Average Convergence Divergence
TTI – The Trend Thrust Indicator is an adaptive trend indicator taking both price and volume moments into its logic.
VPCI Indexes – The average VPCI score of each individual index component.
VPCI “V” Bottom – A capitulation signal occurring when the VPCI has fallen two standard deviations below a moving average of itself and then pops back above the lower standard deviation band (Bollinger Band).
For more information on Capital Weighted Volume/ VPCI Index:http://www.traderspress.com/detail.php?PKey=950&affiliate=volumeanalysis)
Disclaimer:
Definitions:
Capital Weighted Volume – This is the true volume of an index. It is calculated by summing the volume of each individual index member in proportion to its weighting the index.
Capital Weighted Up Volume – The capital weighted volume of securities closing higher.
Capital Weighted Down Volume – The cap weighted volume of securities closing lower.
Cumulative Cap Weighted Volume – A running total of the cumulative net of CW-Up versus CW-Down Volume.
AVSL Anti-Volume Stop Loss – Proprietary formula taking into account support, volatility and the inverse of price-volume’s asymmetrical relationship.
VPCI- Volume Price Confirmation Indicator – measures the asymmetrical relationship between price and volume over the course of time and trends.
VW-MACD – Volume Weighted Moving Average Convergence Divergence
TTI – The Trend Thrust Indicator is an adaptive trend indicator taking both price and volume moments into its logic.
VPCI Indexes – The average VPCI score of each individual index component.
VPCI “V” Bottom – A capitulation signal occurring when the VPCI has fallen two standard deviations below a moving average of itself and then pops back above the lower standard deviation band (Bollinger Band).
For more information on Capital Weighted Volume/ VPCI Index:http://www.traderspress.com/detail.php?PKey=950&affiliate=volumeanalysis)
Disclaimer:
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