Is the daily amount of traded stocks a good indicator of a future crash?
Preceding the October 29, 1929, there was an unprecedented amount of stocks trading hands (i.e. 16 million in one day). Does that amount indicate the fear of the traders, and a coming crash? Can we tell a crash coming from the point dropping too? or is the stock market not a teller of these things?
ALSO – where (online) can I find the daily amount of stocks trading hands?
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April 7th, 2010 at 5:09 pm
look at nyse.com
Most holdings are institutional now, not as in 1929.
April 7th, 2010 at 5:40 pm
No, your premise is wrong. Other factors such as futures expirations, short calls, end of quarters, etc., also affect market sales volumes.
April 7th, 2010 at 6:04 pm
You can find the daily trading volumes for all of the exchanges at Yahoo! Finance.
Increases in volume happen all the time, and just because they may also occur before a crash (and especially DURING a crash), these increases do not indicate a looming crash. If you look over time, volume surges lead to any kind of market, bullish, bearish or neutral.
April 7th, 2010 at 6:49 pm
Here is where to find daily volume on yahoo finance
http://finance.yahoo.com/marketupdate?u
There is no single indicator to use as a crystal ball for direction. Volume is generally used as a confirming indicator.