Tuesday, January 17, 2012

Dax sentiment and volume 16.1.2012

Current market situation is being led by very low volume. In the other words, most of the investors are not willing to buy or sell. Usually, market has tendency to go up during these kind of situations.

During last 10 days, only 2 days has got more advancing stocks than declining stocks.

According to TRIN studies, the market has more volume on declining stocks than advancing stocks.

The volume index hasn't been rising lately, so either the prices has to come down or someone should start buying stocks heavily.

This seems a little bit difficult situation, so it would be better to stay on sidelines and wait. It seems that the probability for a downside correction has risen. During next 3 months we could see lower levels than where we are at the moment. It is also an option expiration week in the US, so during the low volume, it will be easy to play many options worthless.