Users: SBB: CHART OF THE DAY: This Chart Will Silence Everyone Who Has Been Talking Crap About Low Trading Volumes - Business Insider

CHART OF THE DAY: This Chart Will Silence Everyone Who Has Been Ta...

Comparison of S&P to Volume from March 2009

Trading volume in the stock market has been dismal for years in the wake of the 2008 global financial crisis. And it's been viewed as a huge negative by the bull-market naysayers as most don't prefer trading in thin, illiquid markets unless that's a specific component of the trading strategy.

However, Bespoke Investment Group put together an interesting chart showing that since 2009, in the new paradigm, high-volume trading days have been overwhelmingly negative for stock market performance:

Basically, you would have made 108 percent if you bought and held the S&P 500 index since the bottom in March 2009, but if you bought stocks on only the days that volume was above average, you would be down more than 30 percent.

Read more at Bespoke Investment Group >

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