Gold Volume Analysis
I found this link on another Blog this weekend, found it interesting and thought I would share it (it is also in one of my comments in a post below but thought it should be highlighted, so here you go).
Thoughts and feedback are welcome. 😉
Always remember, exceptionally large volume is when smart money movers are in action, either covering old or taking new positions, in the market. It is during these high volume events that one can see the “footprints” left behind by smart money movers….
Smart money sells high and buys low. When smart money is active, volume increases. If smart money were selling gold, the highest volume would occur near the swing highs, and not after a $90 decline. The highest volume is at the low, [so far], so smart money is trying to hide its hand as it buys into the decline. Also, smart money has deep pockets, very deep, so they are not concerned with day-to-day price action even when price moves against them. They know price is going higher because they are the ones behind the move.
Smart money does not like company. It is their purpose to create as many situations as possible to shake people out of the market.
http://www.safehaven.com/article/41561/gold-and-silver-at-significant-support-new-story-developing
Excellent read. Thanks for posting.
Puts Volume into perspective!
I like to look at volume too and noticed late Friday the big buying volume on DUST AND JDST and the low buying volume on JNUG AND NUGT and I bought a small position in JDST and DUST and would have bought more but the US stock market is closed on Monday and one’s maneuverability is constrained ……
Volume alone when comparing two different stocks is somewhat misleading when the price of each stock is different and you should also look at “Net Money Flow” into each stock:
DUST: 30,833,779 shares * ave Price 17.20 = $530,340,999
NUGT: 8,478,205 shares * ave Price 73 = $618,908,965
Viewing it this way, $88,567,966 actually flowed into NUGT