How Important is Volume? – Real Time Insight

As we start the second half of the year, we are seeing some decent volume. I would have thought that the 4th of July holiday on a Wednesday would clear out many market participants, but it may not.

The question is, will the relatively good volume dry up in the summer heat tomorrow? It is the day before holiday so we know the bond market closes early ensuring low volume from that aspect of the market. But how will stocks fare and should you take a seat on the sidelines just because of the low volume?

Keep in mind that Thursday is going to carry a lot of same store sales data and Friday has the all in important job number. Suddenly the trader’s vacation just got a whole lot shorter, didn’t it?

I do want to note that days of historically low volume have proven to be great opportunities for the nimble trader. The day after Thanksgiving springs to mind as the perennial low volume / big move day.

So if there is low volume tomorrow, will you have the guts to set off some fireworks in your portfolio?