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Message: Coach247 question / SGX / High volume
2
Nov 12, 2007 10:07AM

Very good call Brulenorth - I have been noticing the heavy volumes for quite a while. Coach, if you're reading, do you have a call on this?

What a contrast with other stocks I've been trading e.g. 20k shares / day.  The volume on SGX is remarkably high - for example, today's volume is 2.8m shares, whereas KXL is 0.3m shares.  The difference in shares prices are cancelled by the diff in company sizes (market cap), leaving .... raw volume.

So what is your interpreation of that?

Here is a site that talks about high volume

The gist of it is that high volume trading in a limited shares-outstanding and small price stock can lead to sudden breakouts or breakdowns.

High volume sure is a lot better than low volume.  Trading on low volume is like getting changed in a telephone booth.  Good luck selling your position if you need to.

But that still doesn't answer why SGX sustains extremely high volumes.  It is far, far beyond the level that the market maker needs to sustain.  What's it all about? 

Anybody have an insight?

 

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