Trading volume in the stock market has been dismal for years in the wake of the 2008 global financial crisis. And it’s been viewed as a huge negative by the bull-market naysayers as most don’t prefer trading in thin, illiquid markets unless that’s a specific component of the trading strategy.
However, Bespoke Investment Group put together an interesting chart showing that since 2009, in the new paradigm, high-volume trading days have been overwhelmingly negative for stock market performance:
Basically, you would have made 108 per cent if you bought and held the S&P 500 index since the bottom in March 2009, but if you bought stocks on only the days that volume was above average, you would be down more than 30 per cent.
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