Even though market is going down look at the turn over....It is not that bad 1900+ already.
So keep ur hopes up...
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rijayasooriya wrote:Hi Guys,
Even though market is going down look at the turn over....It is not that bad 1900+ already.
So keep ur hopes up...
rijayasooriya wrote:Hi Guys,
Even though market is going down look at the turn over....It is not that bad 1900+ already.
So keep ur hopes up...
Brother this is buying and selling.StocksWatch wrote:rijayasooriya wrote:Hi Guys,
Even though market is going down look at the turn over....It is not that bad 1900+ already.
So keep ur hopes up...
In fact the relatively high volume is what is disturbing for me. If the market comes down on low volumes, I wouldn't bother much. But when it happens on relatively high volume, that is something to worry.
This means there are people out there who are disposing their investment wholesale, isn't it? Otherwise the volume cannot be relatively high. As described in investopedia.com, true capitulation involves extremely high volume and sharp declines which is usually indicated by panic selling.
Anyway I have seen in some specific counters, the volume has dried up. These will recover faster in a short-term recovery of the market.
I am expecting a short term recovery once this panic selling is over because the people will think the bear run is over and start buying. But after that short-term recovery the bear run may again continue...may be until latter part of this year.
rijayasooriya wrote:Brother this is buying and selling.
U can not dispose if another person is not purchasing which means market is still attractive and people want to invest on it.
I think this is a + sign.
StocksWatch wrote:rijayasooriya wrote:Brother this is buying and selling.
U can not dispose if another person is not purchasing which means market is still attractive and people want to invest on it.
I think this is a + sign.
I can understand your point. But why don't you take a second to think about the other side of the story? If the market is so attractive why do the people continue to sell at this rate? The answer to that question, as far as I can see, is because there are some concerned people out there who have finally decided to capitulate.
As I said earlier, this panic selling will fade away for sometime (as there are still some people who are not being concerned yet) and then there will be a short-term recovery.
To reinforce what I said earlier and to put it in another way, if the volume decreases when the prices fall, there will be a diminishing supply, creating a supply and demand imbalane and ultimately driving the price up. But a relatively high volume on a day when the prices have fallen sharly is definitely not a good sign. We will see how the market perform tommorow to get a better idea.
P.S. BTW the volume today is only modest, we cann't say it is on higher side compared to the average seen this year.
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