Re: [RT] Re: chart formations

[Ira Tunik <ist@xxxxxx>]

Since the early 70s and the introduction of options, volume numbers have
meant less and less as an indicator.  At one time I used volume in
my technical analysis and when I saw what was happening on the floor of
the options exchange I realized that volume meant a great deal less in
any system then it did prior to that time.  As the years have gone
by and more and more funds, institutions, firms and the public are using
options, volume numbers have been skewed.  If a market maker has 
a position of 100 calls at or near the money, he can trade up to 10,000
shares of stock with impunity. This is small size.  The only thing
that stops volume from growing even greater is position limits on the stock
options.  The arbs against futures, and now index symbols, makes volume
numbers even less accurate as a predictor.  There are just to many
outside factors influencing the volume numbers for them to have the same
meaning that they had 30 or 40 years ago.  Good trading.  Ira.
Gitanshu Buch wrote:

Not sure how I would position-trade
this market on the long side - bear market rally or not.








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