Trading volumes are weak, beware!

Volume is one of the rare technical gauges that can actually help us get ahead of the curve a bit. We always look at volume as one of the most important barometers. It s worthwhile to note that volume in the stock rally off the March 2009 lows began to wane a few months in and by last June was showing more selling pressure on up days than buying pressure. Only on down days did volume pick up. Interestingly while markets rebounded from June 2010 losses in July, the volume of buyers hit a fresh low. Lasting gains need a steady stream of new buyers and believers to sustain. Thinly traded markets are notorious for sharp, shocking losses in short periods of time. It's just the way it is...