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NYSE Volume Abysmal: 40% Below Average

Tyler Durden's picture




 

Call it the no volume melt up, edition XYZ. Total NYSE volume 8 minutes before close is 662.15 compared to an average of 1133. In other words today's latest market upswing is due to market participation that is 40% below average. Don't look for any bank to make money on commissions with days like today. Which unfortunately is increasingly more what the typical daily volume is starting to look like. And with the curve starting to flatten, soon none of the banks "adjusted" drivers of top line strength will be much of a factor. Let's hope that M&A activity picks up or else Q1 financial earnings will be, just like in Q4, only up to par due to another multi-billion "reserve and NPL reduction" accounting scam.

 

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Mon, 02/07/2011 - 17:02 | 941395 apberusdisvet
apberusdisvet's picture

All it's going to take is one big black swan and then POOF; whatever is left of American equity will be further dimished.

Mon, 02/07/2011 - 17:10 | 941421 101 years and c...
101 years and counting's picture

no black swan needed.  just need W&R to sell a block of 3 ES contracts at market and poof.

 

 

Mon, 02/07/2011 - 18:07 | 941582 spongeBOB
spongeBOB's picture

Or Ben getting hit by a speeding car while crossing the street.

Mon, 02/07/2011 - 18:58 | 941711 salimmk
salimmk's picture

Where is one of those smart cars when you need them?

Mon, 02/07/2011 - 19:33 | 941783 blind squirrel
blind squirrel's picture

Your Bloomberg is showing the volume with 24 minutes left in the trading day and you  are comparing it against other days' entire volume. Notice in the upper left hand corner where it says DELAY 15:36.

 

The last half hour is among the most active trading.  This post seems misleading. 

Mon, 02/07/2011 - 23:10 | 942150 Problem Is
Problem Is's picture

The Bernank's lip quivers and beard twitches every time he crosses a street...

Mon, 02/07/2011 - 17:16 | 941436 william the bastard
william the bastard's picture

Does this mean that "smart" munney reps the 60% ?

Mon, 02/07/2011 - 17:33 | 941495 topcallingtroll
topcallingtroll's picture

Unexpected events are about 50 50 positive to negative. Those who have a fear response when they hear black swan cant invest objectively.

Tue, 02/08/2011 - 00:49 | 942263 whatsinaname
whatsinaname's picture

Maybe banks are making money in currency trades ?

Is that where all the volume went ?

Tue, 02/08/2011 - 01:39 | 942307 zebra
zebra's picture

the black swan is marinated in Ben's BBQ sauce now.

Mon, 02/07/2011 - 17:03 | 941399 Ragnarok
Ragnarok's picture

Superbowl Hangover?

Mon, 02/07/2011 - 18:30 | 941628 Rainman
Rainman's picture

.....yes, called a thousand large on the Steelers +3. My bad.

Mon, 02/07/2011 - 20:30 | 941931 Thomas
Thomas's picture

On the bright side, they wouldn't be worth squat soon.

Mon, 02/07/2011 - 23:17 | 942158 Problem Is
Problem Is's picture

We ridiculed a bandwagon-eer fair weather fan with a brand new Packers jacket on today...

I enjoyed myself...

Mon, 02/07/2011 - 17:03 | 941400 hambone
hambone's picture

Not a "market" - please refer to it by it's proper name ---> Political tool.

Mon, 02/07/2011 - 17:09 | 941416 redpill
redpill's picture

Everyone is waiting for the dip so they can fucking buy it

Mon, 02/07/2011 - 17:25 | 941467 topcallingtroll
topcallingtroll's picture

No dip for the dipshits. Buy the fucking ramp... BTFR.

Mon, 02/07/2011 - 17:48 | 941533 hambone
hambone's picture

BTFPRB - Buy the fucking parabolic ramping blowoff...that never blowsoff...til it does.

Tue, 02/08/2011 - 06:49 | 942402 Zero Govt
Zero Govt's picture

Just where is the f'n "ramping" ???

...this low (pitiful) volume makes a mockery of the myth the Fed are pumping in mountains of counterfeit money to float the Indexes!!!

Another myth busted ...Reality Bitchez

Mon, 02/07/2011 - 17:14 | 941430 traderjoe
traderjoe's picture

"Let's hope that M&A activity picks up"

I know this is somewhat sarcastic. I lost count of the number of times a deal "weekend" was pronounced as the start of another M&A wave. 

No one cares about this market anymore...

Mon, 02/07/2011 - 17:42 | 941516 redpill
redpill's picture

M&A is one of the favorite things to talk about for the CNBS chuckleheads, it's an extend-and-pretend safety zone where everyone can play happy until next commercial break.

Mon, 02/07/2011 - 18:26 | 941619 william the bastard
william the bastard's picture

No one watches CNBC. If a tree falls...

Mon, 02/07/2011 - 17:17 | 941437 NOTW777
NOTW777's picture

weird day. kept looking at the indicies and trying to figure where the action was - a few drillers. many other recent movers were flat

Mon, 02/07/2011 - 17:22 | 941450 Liars Poker
Liars Poker's picture

XLF

 

Low volume is obviously a silly indicator for trading.

 

www.nacocapital.com

Mon, 02/07/2011 - 17:43 | 941520 NOTW777
NOTW777's picture

ah - have no financials on my trading screen

Mon, 02/07/2011 - 17:18 | 941440 ragedmaximus
ragedmaximus's picture

if no volume and a float up why do i always lose money no matter what i buy long or short rigged

Mon, 02/07/2011 - 17:23 | 941455 topcallingtroll
topcallingtroll's picture

You have got to buy and sell at technical extremes. If you want to play something two days before a mostly benign earnings report buy psdv. I just went in for 5000 shares at 5.09 plus the goldman subpenny.scalping.

Mon, 02/07/2011 - 17:26 | 941464 ivana
ivana's picture

stay away when no volume - than robos kill human easily. in general, whole manipulation on most of markets is exceptionally possible because no volume.
Powerz know that very well and count on that.

Mon, 02/07/2011 - 17:29 | 941477 topcallingtroll
topcallingtroll's picture

Except in small low information companies. Look at psdv. The real people dont want to hold it until earnings day. Not enough price/volume action to interest a machine. This is a nice little inefficiency to pick up. Hell yeah i am talking my.book.

Mon, 02/07/2011 - 17:25 | 941459 Threeggg
Threeggg's picture

What does volume have to do with the market ?

As long as it keeps going up who needs volume ?

sarc/

Mon, 02/07/2011 - 17:34 | 941497 ZeroPower
ZeroPower's picture

The sarc tag wasn't necessary, youre exactly right.

I've been reading the 'OMG. LOW VOLUME MELTUP' posts here for almost 2 years now and the fact of the matter is, price action always wins. Whether the meltup was low vol or high, who cares - its there, and the values are what matter.

Now, on any downswing (i.e. egypt friday over a week ago) the volume clearly crushes the up volume, but thats becuase everyone is trying to be a hero and call the top at the same time. And id bet some of the same shorts that were selling that day still haven't covered and they presently find themselves about 50 handles in the red on ES. Who's the sucker here?

Mon, 02/07/2011 - 20:09 | 941888 OptionsHedge
OptionsHedge's picture

The bears are trapped in the black swan melt down event of 2008. Price action is price action. By puts if the bears dont like the action. And see the paper $ vaporize.

 

Mon, 02/07/2011 - 17:25 | 941461 Chupacabra1977
Chupacabra1977's picture

This market reminds of this famous quote from none other than-

 Mugatu: SHUT UP! Enough already, Ballstein! Who cares about Derek Zoolander anyway? The man has only one look, for Christ's sake! Blue Steel? Ferrari? Le Tigra? They're the same face! Doesn't anybody notice this? I feel like I'm taking crazy pills! I

 

Mon, 02/07/2011 - 17:30 | 941480 Ragnarok
Ragnarok's picture

-One look!

Magnum

-It's Glorious.

Mon, 02/07/2011 - 17:40 | 941514 Chupacabra1977
Chupacabra1977's picture

And this market makes me feel like this quote-

 

Mugatu: Todd! Are you not aware that I get farty and bloated with a foamy latte?

Mon, 02/07/2011 - 17:29 | 941476 NotApplicable
NotApplicable's picture

In other words, the equities exit door is getting smaller by the day.

Mon, 02/07/2011 - 17:29 | 941479 system failure
system failure's picture

It's not a stock market for investors anymore. The SEC has destroyed the true catalyst for jobs growth with no regulation. Let the dark pools with closed eyes, HFT's need for speed, and flash order rapers proceed as always and strip total control from everyone but themselves. Eventually, the wolves will have to eat and hopefully they devour themselves all the down to oblivion soon enough. If fact, the sooner the better with their quote stuffing diligence.   

Mon, 02/07/2011 - 17:30 | 941482 treasurefish
treasurefish's picture

...and in related news, $840,000 in benefits is paid out to deceased City of Buffalo, NY employees:

 

http://www.wivb.com/dpp/news/buffalo/Questions-over-dead-employees-benefits

Mon, 02/07/2011 - 23:25 | 942171 Problem Is
Problem Is's picture

So? I Got That Beat
Bloom-Douche-Berg spent $250k in taxpayer money last year for the salaries of his 3 personal chefs...

That's mighty pricey Kosher there Mayor Bloom-Douche...

Mon, 02/07/2011 - 17:31 | 941485 homersimpson
homersimpson's picture

You get better odds at a craps table.

Mon, 02/07/2011 - 17:32 | 941493 RobotTrader
RobotTrader's picture

PigMen plan on walking up the tape on low volume until every bear like Tom O'Brien throws in the towel on short trades he has held for 6 months.

Mon, 02/07/2011 - 17:45 | 941523 lieutenantjohnchard
lieutenantjohnchard's picture

so if this is the case, and you know it in advance, then why did you write a post as contributor saturday last wondering if the market had topped?

in addition, since calling the bottom was so easy, given that you made a fortune off the 2009 lows unlike rosie, then i suppose you'll be able to time the top and make a second fortune on the way down.

btw, is gentleman jim a dolt today, or a sage gold bull given your earlier post that commodities (gold and oil you said specifically) were about to launch?

Mon, 02/07/2011 - 17:36 | 941504 topcallingtroll
topcallingtroll's picture

Hey robo i dont know if you like to play catch a falling knife but look at price and volume action on psdv. The earnings report should have no negative surprises. This was irrational today. You got all night to look it up and think about it.

Mon, 02/07/2011 - 17:47 | 941528 The Count
The Count's picture

Number ONE of Ben's 10 commandments (isn't he doing gods work?):

Thou shall not have a down day on the Dow. 

 

 

Mon, 02/07/2011 - 17:47 | 941531 NOTW777
NOTW777's picture

begrudingly let go of HOC today.  prob will regret

Mon, 02/07/2011 - 18:30 | 941629 william the bastard
william the bastard's picture

Sold TSO VLO WNR myself today. 3 month holder.

Mon, 02/07/2011 - 18:02 | 941563 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Who would have known that the Cheeseheads accounted for such a large percentage of daily volume ...

Mon, 02/07/2011 - 18:04 | 941568 spongeBOB
spongeBOB's picture

This market is getting tired and with earnings season almost over I cannot think of any catalyst to keep going up without a sizable correction. Today's action not encourging despite the low vol. After the initial gap the indexes trended down towards the close except for a brief spike after the consumer credit then contiued downward after the close. Going long here is pure gambling.

Mon, 02/07/2011 - 18:09 | 941588 Johnny Lawrence
Johnny Lawrence's picture

Current top headline on CNN.com:

Merger Monday sends stocks climbing

Weeeeeeeeeeeeeee!!!!!!!!!!!

 

Mon, 02/07/2011 - 18:15 | 941594 blind squirrel
blind squirrel's picture

So you show volume with 8 minutes left but what was final volume?  Considering first half hour and last half hour are the busiest, 8 minutes could change the final tally significantly.  Just trying to keep it real.

Mon, 02/07/2011 - 18:17 | 941599 Yancey Ward
Yancey Ward's picture

Believe me, they will keep it going until the retail investor is back in.  If they have to take the Dow to 25,000, they will do it.

Mon, 02/07/2011 - 18:23 | 941612 asteroids
asteroids's picture

I got stopped out of my shorts today. I bet the Pigmen will engineer a 10% correction that will happen overnight. Anyone long overnight will be fucked.

Mon, 02/07/2011 - 18:44 | 941676 spongeBOB
spongeBOB's picture

How nobody is talking about the PIIGS anymore? I keep waiting for the headlines about Spain but so far all quiet.

Mon, 02/07/2011 - 18:54 | 941698 walküre
walküre's picture

Combine the lack of volume with the bull market riding on margin fumes...

Why are they making bonus payments an issue over in Europe?

It won't matter in a few months.

Well, on paper it will all look great but in reality.. THERE IS NO MONEY!

Silver is telling the story.

Mon, 02/07/2011 - 19:06 | 941728 Yen Cross
Yen Cross's picture

Blame it on the weather. Oh check out the Baltic dry.

Mon, 02/07/2011 - 19:13 | 941741 economists_do_i...
economists_do_it_with_models's picture

With SPY RSI being 70+, I see the gap-up today being filled very quickly over the next day or 2.

Mon, 02/07/2011 - 20:00 | 941871 mynhair
mynhair's picture

Gaps are for geeks.  How about those two aborted plunges in the last hour?

Mon, 02/07/2011 - 19:31 | 941779 chump666
chump666's picture

low volume = plateau + short selling to begin = correction.

Mon, 02/07/2011 - 20:04 | 941876 mynhair
mynhair's picture

low volume = put a bid in low to catch those afore mentioned plunges

Happens to the upside, too, on these low volume days.

Scarier than cit to play, though.

Mon, 02/07/2011 - 20:33 | 941937 chump666
chump666's picture

yeah but we are small frys :)

say some mega fund shifting 70% to short position the rest long.

I play the market to buy some can beans and maybe some good quality scotch whisky or tequila...

Mon, 02/07/2011 - 20:14 | 941900 The Axe
The Axe's picture

no one want to trade, game is fixed, period.... call me when they turn off the lights

Mon, 02/07/2011 - 23:46 | 942199 the rookie cynic
the rookie cynic's picture

Hey, who unplugged the HFT servers?

Tue, 02/08/2011 - 01:15 | 942288 chump666
chump666's picture

nah they are still running, just waiting for that mass short light up. 

beginning of the end...you can feel it

Tue, 02/08/2011 - 02:13 | 942329 blunderdog
blunderdog's picture

How low can the VIX go, and how long can it stay there?

Tue, 02/08/2011 - 07:02 | 942410 ZeroPower
ZeroPower's picture

Was up yesterday thanks to some premium buying..

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