Comments on: Volume- A Critical Technical Analysis Indicator https://www.thebluecollarinvestor.com/volume-a-critical-technical-analysis-indicator/ Learn how to invest by selling stock options. Thu, 05 Jan 2012 20:26:10 +0000 hourly 1 By: owen https://www.thebluecollarinvestor.com/volume-a-critical-technical-analysis-indicator/#comment-1186 Sat, 11 Sep 2010 18:12:11 +0000 /blog/?p=2621#comment-1186 Even the CBOE has 38 open contracts on Saturday, so it looks like Alan was correct. The three contracts to sold to open were being bought by someone buying to close. Net change = zero.

By the way, the reference to CBOE, for those of you who do not know the initials, is the Chicago Board Options Exchange. It is the pretty much the origin of options trading, and many of the options contracts that are traded. If you want to see more information you can go to http://www.cboe.com

Just another useful resource to add to you list.

Note: Alan alerted me to an error in the description line on page “Code D5” in the options calculator. It should read “I SOLD …” rather than “I BOUGHT …”. I did not do a page for buying to open, because that isn’t what the BCI is about. It’s very risky and should only be used by the most experienced traders.

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By: admin https://www.thebluecollarinvestor.com/volume-a-critical-technical-analysis-indicator/#comment-1185 Fri, 10 Sep 2010 21:18:32 +0000 /blog/?p=2621#comment-1185 Don and Owen,

One other possibility is related to the fact that open interest is a cumulative and ongoing figure. In other words, just as Don opened 3 positions today, three others may have been closed. Volume is re-set at the beginning of each trading day. If we added 3 OI positions, the published OI may not go up in sync withn that figure.

Here is a link to an article I wrote last year on this subject:

http://www.thebluecollarinvestor.com/blog/stock-option-chains-open-interest-and-volume/

Alan

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By: owen https://www.thebluecollarinvestor.com/volume-a-critical-technical-analysis-indicator/#comment-1184 Fri, 10 Sep 2010 18:53:45 +0000 /blog/?p=2621#comment-1184 Don – I’m willing to go out on a limb and suggest they may not update the figure until the end of the day, when they see how many are still open. 3 and 38 are showing up on Investools, Schwab and AOL Daily Finance. it will probably goe to 41 tonight.

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By: Don B https://www.thebluecollarinvestor.com/volume-a-critical-technical-analysis-indicator/#comment-1183 Fri, 10 Sep 2010 17:19:53 +0000 /blog/?p=2621#comment-1183 This morning I wrote 3 Oct 32 Calls on FST. I observed before doing so that the Volume was zero, while the Open Interest was 38. Just as soon as I got filled, I note naturally enough that the Volume was now 3 – and yet the Open Interest remained at 38. Simply put, what gives here? TIA.

Don B

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By: admin https://www.thebluecollarinvestor.com/volume-a-critical-technical-analysis-indicator/#comment-1182 Fri, 10 Sep 2010 12:54:10 +0000 /blog/?p=2621#comment-1182 THE ETF REPORT HAS BEEN EXPANDED:

Premium members: The BCI team has enhanced the ETF report by now indentifying and charting the top 3 performing S&P 500 Sector ETFs. This is IN ADDITION to the traditional list of top-performing ETFs in ALL asset classes. As a result, you will have more choices for your ETF portfolio and an increased selection of domestic securities. The BCI team continues to make very effort to elevate the quality of the educational products we provide to our subscribers.

To locate this report, look in the “resources/downloads” section of the premium site for “Top performing ETFs dated 9-10-10.

Alan

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By: admin https://www.thebluecollarinvestor.com/volume-a-critical-technical-analysis-indicator/#comment-1181 Thu, 09 Sep 2010 15:17:15 +0000 /blog/?p=2621#comment-1181 Amy,

GMCR was a stock that made significant profit for many of us last year until the April downturn. It’s hard to forget “old friends”. Here is what made me mention this equity:

1- It has been uptrending the last two months

2- Great fundamentals

3- Improving technicals

4- *****Price increases with increasing volume. This fits right in with the theme of this week’s blog article. It showed the probability of continued institutional support during a time when market volume is traditionally low.

To sum up: No unique superpowers, just sound fundamental and technical analysis with common sense thrown in. Our goal should not be to be correct 100% of the time, that’s impossible. However, more often than not is achievable.

Alan

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By: Amy https://www.thebluecollarinvestor.com/volume-a-critical-technical-analysis-indicator/#comment-1180 Thu, 09 Sep 2010 14:19:03 +0000 /blog/?p=2621#comment-1180 Alan,

On last weeks blog comments (August 30 and 31st) you mentioned GMCR and since then the stock price has increased from $30 to $35. Can you review what caught your eye about this stock since it wasn’t on the premium watch list.

Thanks for your help.

Amy

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