Baltimore, MD (PRWEB) April 16, 2010
Despite the recent rally in the U.S. stock market, a new article from Money Morning shows that investors should still be nervous about the stability of the markets.
U.S. stocks advanced for the fifth day in a row yesterday, with the S&P 500 closing above the 1,200 level for the first time in more than 18 months. Traders cited growing confidence in the U.S. rebound as a key catalyst.
As torrid as this rally in U.S. stock prices has been, the lack of trading volume has been a consistent cause for concern. And conventional investing wisdom tells us that when stocks rally on low volume, traders perceive that lack of widespread participation as an indicator of future vulnerability.
The problem could be even worse than anyone realizes, according to Money Morning Contributing Editor Shah Gilani. A retired hedge fund manager, Gilani has an insider's understanding of Wall Street's inner workings. He is a noted expert on the global credit crisis.
Gilani's article shows:
- How and why Wall Street is artificially inflating market volume
- The dark side of exchange trading funds (ETFs) - and why they are contributing to vulnerability in the stock market
- The dangers of high frequency trading - and how it masks true market volume
- Why low market volume should be raising some major red flags for investors
- The best move you can make now to protect your assets
Find out the whole story - and how to protect your portfolio - in Shah Gilani's article: Low Stock Market Volume: It's Even Weaker Than You Think.
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