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Summers tend to be slow. The current action is more characteristic of August
but you can't pick the times and seasons for the market. There was one
August where the whole month traded in about a 10 pt range (don't recall
which year). Of course we were probably trading at 1/3 the current 1500
price, but even so that was very slow for the time, and this type of
activity is not uncommon during the time the "experts" call for a summer
rally (fizzle).
Fundamental reasons for slower volume:
Summer vacations (typically most popular in August but July is a big
vacation month too)
People spending more time with families and less with markets -> lower
public volume -> Lower professional volume -> Lower overall volume and
smaller trading ranges. (the downward volume cycle)
Technical reason for slower volume:
We are off the highs and the public still thinks in terms of being in a down
market even though it has retraced over 50%. Once bitten twice shy.
Patrick White
----- Original Message -----
From: "Brian Keith Voiles" <admagic@xxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Thursday, July 13, 2000 1:41 PM
Subject: [RT] Is this month DEAD for the S&P or is it just me?
What is your experience? Is July just a bad month to trade
due to vacation or what? Why is the volume so low?
-- Brian
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