Your pop up blocker may be preventing the MarketSmith tool from opening.
Learn how to resolve this issue.
A few days ago on April 3rd, 2012, volume on FOSL grew +860% but the price only went up a measly 0.4%. And FOSL could not manage to breakout from its pivot buy point @136.08.
Today April 5th, 2012 FOSL broke out past buy point. As of noon price is +3.6% but there is no volume (yet?)
Does the volume on April 3rd represent accumulation by institutions or does it represent churning? You would think with volume that heavy you want to see higher increase in price, wouldn't you?
I would say it represent accumulation by institutions. There was no volume today when it broke out, this is excusable because the day before a holiday, vol. is generally low. The weekly volume is fabulous, and weekly charts are superior to daily, in my opinion
Be carful when excusing a stock that breaks out with no volume. Volume should always validate a breakout. I asked a similar question at a level 3 class a while ago. And the answer was unequivocally volume should always support a breakout. Even if it is a holiday week, a dignitary funeral week or whatever is going on in the market. Low volume does not mean the breakout will not work. It just lessens the probabilities greatly. In my eyes the below average volume on today’s FOSL breakout makes the stock very suspect. I also think the huge, huge, volume on 4/3/12 was not accumulation at all. It was churning, big churning! Don
Thank you all for answering the questions, especially about heavy churning.
I wish I can post a chart if you look at daily chart for FOSL, on 2/14/2012 FOSL price up 14.7% volume grew 686%. Then on 4/4 price only up 0.4% volume grew 860%, price should have increased/decreased more than that.
© 2013 MarketSmith, Incorporated. All Rights Reserved. MarketSmith® is a registered trademark of MarketSmith, Incorporated. All data provided by William O'Neil + Co. Incorporated unless otherwise noted.