How about this: A ton of hedge funds got stopped out of the market on the decline of 2008. 20% of all brokers got pushed out of the business. Most retail investors had margin calls and did not have the funds to get back in. Lots of shorts got squeezed out of the business over the past year–if they didn’t just leave with their money after 2008. So, maybe the answer is that this might just be the new world we live in!
I do think volume left this market – not by choice!
The action right now is very healthy and we are not in a perfect world or market. As traders, we have to just trade the setups and listen the tape and traders in the trenches. Not educators who don’t trade for a living, or sales traders who failed as traders and went to selling ideas instead of trading them, or analysts that have no idea what real action looks like.
Just a bit of a rant…I’ve been trying to get everyone long this market since the 9% pullin, especially after that bullish wedge formation at 1,110! Elliot talked about the lack of volume early on in this rally. When the volume comes, it will be the professional sellers getting out (and the potential of a top) just as it was the bottom on the high volume February 5th reversal day.
