Market Volume

[Guceri 10]

Does anyone know what exactly people are referencing when they talk about "market volume"? is there a specific index that they look at? or do they look at the exchange as a whole?

 

Where exactly can you get volume data for the markets?

[Tams 20]

  Guceri said:

Does anyone know what exactly people are referencing when they talk about "market volume"? is there a specific index that they look at? or do they look at the exchange as a whole?

 

Where exactly can you get volume data for the markets?

 

where do you hear this "referencing"?

[Guceri 10]

Tams,

Over the last week or so, you may or may not have noticed that CNBC has referenced "low volume" several times a day in regards to their market updates. Mostly Bob Pisani would bring this up. I am not too sure of what number he is looking at as that is a very general comment to make. I assume he is talking about the NYSE volume only?

 

A lot of time, they will never talk about volume when it is high. This is usually trumped by movement in the VIX as a market head line.

 

On any note, here are a couple links to articles this week that yet again says the same thing without reference what volume they are talking about. There were definitely a few more that I remember reading, but you will get the idea of what I am talking about.

 

Extreme low volume hits the market despite contagion fears over in Europe | How To Invest - How To Buy Stocks - Big Wave Trading

 

Low Stock Market Volume: It's Even Weaker Than You Think - Money Morning

[joshdance 10]

  Guceri said:

Over the last week or so, you may or may not have noticed that CNBC has referenced "low volume" several times a day in regards to their market updates. Mostly Bob Pisani would bring this up. I am not too sure of what number he is looking at as that is a very general comment to make. I assume he is talking about the NYSE volume only?

 

Yes, they are talking about shares traded -- volume. Nothing special. Talking heads on CNBC have zero to offer traders. By the time you hear it, it's already been traded.

[Guceri 10]

Yes, I understand what volume mean. Thanks.

 

I am referring to the number they are talking about. What is the number? What exchange?

 

Volume is a very important metric and drives metrics like the VIX and show the flow of money. I would say it is pretty important.

 

Understanding that CNBC has what seems to be a long bias when they talk is irrelevant to what I am asking.

[gterps 10]

i believe you can make money by doing the exact opposite of what bob pisani says, same with steve liesman. larry kudlow is always saying the market will go up and now is the time to buy.

 

love rick santelli and pay attention to art cashin's levels.

[Spacefaring 10]

  Guceri said:

Yes, I understand what volume mean. Thanks.

 

I am referring to the number they are talking about. What is the number? What exchange?

 

Volume is a very important metric and drives metrics like the VIX and show the flow of money. I would say it is pretty important.

 

Understanding that CNBC has what seems to be a long bias when they talk is irrelevant to what I am asking.

 

This is an attempt to answer your question. It is a contribution anyway. There is so much to learn in this business that we are all permanent students.

 

Have a look at the definition of the TRIN on Wikipedia. TRIN (finance) - Wikipedia, the free encyclopedia

 

There several other indicators such as TICK and PREM, see: Day Trading with Trin and Tick Indicators that are based on market wide statistics (from NYSE mainly) rather than on a single stock or derivative.

 

Look at Investopedia too. Market Breadth: Volume Studies

 

You can obtain TICK, TRIN and PREM etc from most premium datafeeds for a fee. I am not aware of any free realtime (or even delayed) feeds but if anyone knows better please let us know!

 

Space

[mnctigah 10]

Be careful in the bonds/notes...

 

Fixed income is propogated mostly by institutional traders who are very savvy and therefore the most difficult to trade.

 

I do okay because I have access to floor information and paper's levels but even with that I spool my contract size way down (especially with the ZB). I will however trade them when ES volatility is up or use them to trade the spoos when the inverse trade is on.

 

The good thing about them is that risk can be held to just a tick or so. They'll turn on a dime, unlike the ES. That should tell you something about who is across from you in a bond trade.

 

Much more to be aware of in the bonds/notes also. Auctions for example, and the games dealers play in order to push yields up/down early in the session in order to fulfill their agenda come the auction later in the session

 

I was a victim early in my trading career, not understanding the true composition of the bond/note markets. Exercise caution...

 

Ronnie

[Alexenderbill 10]

The market is the place of trading and i know the concept of the Market volume. it is the staregidies that confirm the goods and the ratio of the supply and the demand.

[aadambell 10]

Hi

There cannot be said about market because of sudden increase and decrease. Yet Commodity market regulator, FMC has found huge difference between the ratio of open interest and the volume of trading in some commodities traded on national commodity exchanges.