The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at toddstrade@gmail.com
I am always open to questions, comments, or suggestions on how to improve this blog.


Friday, November 13, 2009

300m

The bottoming process on the SPY lasted from roughly October '08 to March '09 with enormous volume. As a "bottom" was put in place volume then tapered off until about April of this year. There was a stretch through the summer where the highest volume reading was somewhere over 300-million shares.
So on the chart below I have the most recent 3 sessions indicated where 300-million+ shares were traded. Only 3 days in the last 125 sessions have had such a reading, two of which in the last 42 sessions. Curious that the last two "surges" saw the market turn around the next day. I have another vertical line marked where, recently, volume registered nearly 300-million shares, and again price turned around the next day. These cycles are getting shorter. Is it a sign of the season, or something more curious?

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