The stock market's behavior has been marked by a light trading volume recovery.Light trading volume often means high volatility,says Chris Johnson of the Johnson Research Group.It indicates low confidence in the market.
Strong trading volume is necessary for a long term rally.Such volume will help portfolio performance,and can be found in certain sectors even today.
The regional banking,real estate and industrial sectors have seen low trading volume.Margins are very tight in regional banking.
It is time to get into high trading volume stocks.Institutional money managers are doing this.
Mr.Johnson,who has worked at Schaeffer's Investment Research,highlights the exchange traded funds IYZ,telecom;EWM,Malaysia;DVY,select dividend;and the retail sector as higher trading volume prospects for investors to consider at this time.
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