Where's the volume? Stock trading quiet in July - News and Current Events | futures io social day trading
futures io futures trading

Where's the volume? Stock trading quiet in July
Updated: Views / Replies:1,114 / 1
Created: by kbit Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 100,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Thread Tools Search this Thread

Where's the volume? Stock trading quiet in July

  #1 (permalink)
Aurora, Il USA
Trading Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
kbit's Avatar
Posts: 5,895 since Nov 2010
Thanks: 3,310 given, 3,352 received

Where's the volume? Stock trading quiet in July

NEW YORK (AP) -- This month may be the slowest in the stock market in more than three years.
Trading volume, or the number of shares bought and sold, is down because there are fewer big investors buying stocks. And those who want to buy are worried about the job market and the European debt crisis -- and the budget impasse in Washington. If Congress and the White House don't agree on budget cuts and raising the government's borrowing limit, the U.S. is at risk of defaulting on its debt after Aug. 2.
Daily volume on the New York Stock Exchange is down 22 percent so far in July compared with the same period in 2010, according to data provider FactSet. About 3.7 billion shares have traded hands every day on average, down from 4.7 billion in July last year.
If that continues, July will have the lowest average daily trading volume since December 2007, says Patrick O'Shaughnessy, a research analyst at Raymond James.
Low volume is worrisome because it suggests that few investors are driving the stock market's gains or losses. That creates the risk for bigger price swings. When, for example, there are few buyers, someone trying to sell a stock may be forced to keep lowering the price in hopes that someone will want it -- the same as a homeowner who can't find a buyer for a house.
A lack of volume also indicates that some investors don't believe that stocks are worth buying right now.
"Volume in many respects represents conviction," says Jack Ablin, chief investment officer at Harris Private Bank. "And there's just very little conviction."
Traders have reason to be wary:
-- Job growth is weak. Many investors were stunned when the government reported earlier this month that employers created just 18,000 new jobs in June. That was lower than the average of 215,000 monthly jobs created in February through April.
-- The manufacturing industry is in a slump, too. The Philadelphia Federal Reserve Bank said last week that manufacturing activity in the Northeast rose only slightly in July after falling to the lowest level in two years in June. Supply disruptions from the March 11 earthquake in Japan have hurt factory production.
-- Debt problems remain in the U.S. and Europe. If there's no agreement in Washington and the government defaults on its debt, that could have a catastrophic impact on the financial markets. Some analysts say stocks could fall the way they did during the 2008 financial crisis. Meanwhile, European leaders approved a new aid package for Greece last week to reduce its debt, but it's unclear how that will work.
All this has led investors to avoid stocks. And that has hurt volume.
In June, investors withdrew $14.5 billion more than they deposited into U.S. stock mutual funds, according to consulting firm Strategic Insight. That was the largest withdrawal from stock funds since August 2010. "Investors are running scared," said Frank Barbera, portfolio manager of the Sierra Core Retirement Fund.
Fewer hedge funds are in existence today than in 2008, which helps to explain the lower volume, says Ryan Detrick, senior technical strategist at Schaeffer's Investment Research. There were approximately 10,233 hedge funds in the world in the second quarter of 2008, before the financial crisis and stock market crash. By the end of June, there were 9,443, according to Chicago-based research firm HFR.
Even with the low volume, though, stocks have risen this month. The Standard & Poor's 500 index is up 1.8 percent, while the Dow Jones industrial average is up 2.1 percent. The technology-focused Nasdaq composite index is up 3.1 percent. Stocks are up, in part, because companies like Apple Inc. and Coca-Cola Co. have reported strong profits. Second-quarter earnings are expected to rise 12.5 percent from the same period in 2010, according to FactSet.
Still, the low volume makes it difficult for investors to know when to put their money into stocks. If the S&P goes up two days in a row, but volume is low, that's hardly an indication that a trend is emerging, Ablin said.
There's another possible effect of low volume. As trading has been quiet, Howard Silverblatt, a senior analyst at Standard & Poor's, said he has a noticed something near his office in Lower Manhattan: "The bars downtown are a little bit emptier."

Reply With Quote
  #2 (permalink)
Austin, TX
Trading Experience: Advanced
Platform: TradeStation
Favorite Futures: Futures
Posts: 882 since Mar 2011
Thanks: 128 given, 714 received

If you want to know where the volume is....ask your Congressional Representative.

You have to have absolute brass balls in order to invest in US equities right now. With emerging markets killing it, the dollar at abysmal levels and no end in sight (seemingly) for our debt debacle..........

There are just too many greener pastures out there right now (with respect to risk).

I suspect that as soon as the government gets a long term debt management plan in place (if that happens) then the markets will pick up handsomely.

"A dumb man never learns. A smart man learns from his own failure and success. But a wise man learns from the failure and success of others."
Reply With Quote


futures io > > > > Where's the volume? Stock trading quiet in July

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

futures io is celebrating 10-years w/ over $18,000 in prizes!

Right now

$250 Amazon Gift Cards with our "Thanks Contest" challenge!

Right now

Show us your trading desks and win over $5,000 in prizes w/Jigsaw Trading


Webinar: The Best Entries and Exits in trading & in life w/Agustin Lebron

Elite only

Webinar: NinjaTrader 8 Newest Features Release Sneak Peek

Sep 26

Similar Threads
Thread Thread Starter Forum Replies Last Post
Webinar: Trading the Session - Indicators Explained; Sunday July 31, 2:00 PM EST Fat Tails The Elite Circle 98 March 25th, 2015 02:13 PM
Trading Of Over The Counter Gold And Silver To Be Illegal Beginning July 15 tellytub Commodities Futures Trading 29 July 9th, 2011 12:11 AM
Strider's stock trading journal jmjstrider Elite Trading Journals 9 March 2nd, 2011 04:17 AM
Tuesday: Retailers, Data Could Wake Quiet Summer Market Quick Summary News and Current Events 0 August 16th, 2010 11:30 PM
Gulf of Mexico Beaches Quiet as Spill Spreads Quick Summary News and Current Events 0 July 5th, 2010 05:20 AM

All times are GMT -4. The time now is 12:12 AM. (this page content is cached, log in for real-time version)

Copyright © 2019 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts