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S&P500 Update: Where’s The Volume?

  • Written by Syndicated Publisher 456 Comments456 Comments Comments
    February 27, 2012

    The S&P 500 closed the week at a new interim high, up 8.60% in the first 37 days of trading versus 2.69% over the same timeframe in 2011.

    But what about volume? I’ve posted comparisons with 2011 after the first 1224 and 34 days of trading. Here is an updated comparison after the first 37 days.

    According to the data I downloaded from myStockcharts.com subscription, the cumulative volume so far this year is 110.3 Billion versus 135.5 Billion in the first 37 days of 2011. That is a -18.6% decline.

     

     

    I continue to caution that, despite the continued superior performance of the 2012 year-to-date rally, the trading volume doesn’t offer strong confirmation.

     

    Images: Flickr (licence attribution)

    About The Author

    My original dshort.com website was launched in February 2005 using a domain name based on my real name, Doug Short. I’m a formerly retired first wave boomer with a Ph.D. in English from Duke. Now my website has been acquired byAdvisor Perspectives, where I have been appointed the Vice President of Research.

    My first career was a faculty position at North Carolina State University, where I achieved the rank of Full Professor in 1983. During the early ’80s I got hooked on academic uses of microcomputers for research and instruction. In 1983, I co-directed the Sixth International Conference on Computers and the Humanities. An IBM executive who attended the conference made me a job offer I couldn’t refuse.

    Thus began my new career as a Higher Education Consultant for IBM — an ambassador for Information Technology to major universities around the country. After 12 years with Big Blue, I grew tired of the constant travel and left for a series of IT management positions in the Research Triangle area of North Carolina. I concluded my IT career managing the group responsible for email and research databases at GlaxoSmithKline until my retirement in 2006.

    Contrary to what many visitors assume based on my last name, I’m not a bearish short seller. It’s true that some of my content has been a bit pessimistic in recent years. But I believe this is a result of economic realities and not a personal bias. For the record, my efforts to educate others about bear markets date from November 2007, as this Motley Fool article attests.
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