Coppo on Market Volatility
The markets are in a tough & volatile world right now. So if the markets get volatile again – which they will – then many investors will decide it’s safer to sell & go to the safety of the sidelines. So I’m of the view that the rallies are to be sold into & not buying the dips – not yet anyway. Of the recent rallies in the US especially - there has been one very concerning factor – it has lacked volume – this is such a big thing & it’s worrying. A rally with volume is like building a house with bricks – its solid & has good underlying support. But when you see a rally on thin volumes – it’s like building a house on sticks – when things turn it falls in a heap very quickly and without much resistance. The chart of S&P500 & volume under shows clearly that volume reaches its lowest point at market peaks, and conversely reaches its peaks at interim market bottoms. Volume should follow the trend and when it isn’t, it’s time to be very cautious. Full Report here: (VIEW LINK)
Bell Potter Securities is a leading Australian stockbroking, investment and financial advisory firm that provides a comprehensive offering of financial services to a diversified client base that includes individuals, institutions and corporations.