It's Wafer Thin
Not wanting to be negative and more than happy if the market goes up from here till Christmas (here to Timbuktu if it can), but my amateur cursory view from the proverbial bridge (i.e. from distance), says that the elephant in the (trading) room is the paper thin volumes traded. Low volumes (and these have been stubbornly low for some time) ring alarm bells for me because over the years market gurus seemed to have always agreed (and common sense tells me) that small volumes are fundamentally a sign of weakness in the market regardless of price trend.
I guess momentum has to build from a low base to start but these volumes "feel" (because I am no technocrat when it comes to the market, so often 'feel' is all I have) incongruent with market value. Indeed these volumes are dire for such an inflated market.
I did some brief research and found this:
I just would have thought that if we are truly coming out the other end of the GFC that we should have seen some volume by now.
The S&P500 is above pre-GFC levels (and the ASX-200 may well be if not for China currently taking a moment to enjoy a Kit Kat).
I'm sure none of this is news to you, but am I missing something or can we keep going higher for an extended period on wafer thin volumes?
Love to know your thoughts.
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