Trading Volume Dead

Quote from goodgoing:

I didn't come here to insult anyone. Just look at the S&P 500 chart. The last 4 years have been some of the best. If you have not made money it’s not because of low volume, lack of volatility or any other excuse you can think of. It’s because you must change your attitude and learn how to communicate properly. Because inability to communicate is indication of lack of comprehension ability.
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Seemingly you can't differentiate between direction and volatility, the former is quite irrelevant for daytraders and the latter is crucial (for most). Volatility and volume generally go hand in hand. Volatility equals more opportunities, even when compensating by trading larger positions.
Personally - 2007, 2008, 2010, 2011 were the best years for trading but I doubt they'll come back anytime soon.
 
We need a black swan to spook the markets, otherwise we going to see more and more reduced volatility over the next 12 months.

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Until then batten down the hatches and preserve capital.
 
Quote from slumdog:

We need a black swan to spook the markets, otherwise we going to see more and more reduced volatility over the next 12 months.

images


Until then batten down the hatches and preserve capital.
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something is definitely cooking. in last few days volume shoot up on stocks and etf's like IWM,while markets are stuck in super narrow range. we are due for good one direction,big range day. which way(up or down)-i have no idea.:)

it's was suspiciously quiet...while volume is rising
 
Quote from Bob111:
something is definitely cooking. in last few days volume shoot up on stocks and etf's like IWM,while markets are stuck in super narrow range. we are due for good one direction,big range day. which way(up or down)-i have no idea.:)it's was suspiciously quiet...while volume is rising
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The GDP report comes out tomorrow. That could be the catalyst for a big range day.
http://www.bloomberg.com/markets/economic-calendar/
 
but i also suspect that 'they' can once again f** things up. for example-gap up\down at open and same tight range as on previous days
 
bots arbing everything that moves, keeps it tight.

unless you can confuse the bots, say, a walmart headline, and that only lasts 200 milliseconds.

if you're not a bot, you're obsolete.

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Quote from MushinSeeker:

I don't trade futures but I would think traders there want volatility so if ES now moves 20 pts vs 7 in 2008, would that not be better ?
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Not sure where you are getting this from but BOTH the daily AND weekly ATR of ES has gone down significantly from 2008-2011. Trading is mostly a waste of time now since range = profit potential for directional traders and 2012-2013 has very little of that, of course good non-directional strategies still work but those are very hard to come by, especially for retail traders.
 
Here is the intra day range of the Dow (regular trading hours), excludes overnight gaps, from 2002 to yesterday.
Each year is about 260 data points.

There is a period from mid 2003 to mid 2007 where intraday moves were lower than what we have seen this year.
We have all been spoilt by the wild action from 2008 onwards.

A couple of 1000 moves can be seen (one is the flash crash).


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They abolished the Uptick rule in 2007. If it was still in place i think the stock markets would have even lower volaility this year.
 
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