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Yes, sure. A common investing idea is to trade with the trend of price and
cumulative net volume. Cumulative net volume is simply the running total of
upvolume minus down volume. When the CV goes flat to down you want to take
on some caution, reduce margin, reduce longs and wait until it bottoms and
starts to rise again. This way your stock or futures or options are riding
both waves of price and the underlying volume. It increases your odds
tremendously in the short run and long run. That isn't to say there are
individual issues that have a stronger Relative Strength. Time of month can
suddenly reverse both trends unexpectedly and I too have been known to buy
calls into a declining mkt. Sometimes it works well and others I swear I'll
never buy puts in the last week of the month again. It is very possible
these two trends could reverse next week because of the popular notion that
pension money flows in within the last 3 to 5 trading days of the month.
So, your long may have a reprieve next week.
bobr
----- Original Message -----
From: <H.Albizem@xxxxxxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Friday, May 25, 2001 1:09 PM
Subject: [RT] Re: Mkt - OEX and Exchange C/P
> --- In realtraders@xxxx, "BobR" <bobrabcd@xxxx> wrote:
> > Ben has taught us it isn't a wise idea to fade the cumulative net
> volume.
> > ;-)
> >
> > bobr
> >
> Nice gif Bobr, could you explain what do you mean and what is your
> thought process?
>
> Thanks,
>
> Haytham
>
>
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