Submitted by Phoenix Capital Research on 01/11/2012 11:42 -0500
I’ve received a number of emails regarding the fact that stocks continue to rally despite Europe being on the verge of Collapse. Once again, investors are forgetting that stocks are the most clueless asset class on the planet.
Indeed, here are three reasons why this latest stock market rally isn’t to be trusted.
1) Volume has fallen from awful to absolutely horrendous.
Stocks traded roughly nine billion shares on the second trading session of 2012. This marks a 36% decrease from trading volume for the second day of 2011 (nearly 14 billion shares).
Put another way, stocks are levitating on lower and lower volume. Indeed, volume on Monday of this week was the lowest volume of the year so far, even lower than that of last week.
This flies in the face of conventional market action (bull markets are marked by increasing volume) as well as the usual start of the year buying. And it serves as a major red flag that all is not well with the financial system.
Indeed, one wonders what the market would look like if volume were to pick up (hint every time that it has in the last year stocks have collapsed). LMAO, that's whats left of REAL traders with as mind. That's one thing algos don't have LOL
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http://www.zerohedge.com/contributed/three-reasons-why-2012-shaping-be-disaster?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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