The human mind simply cannot process that volume of stocks and bonds data as fast and as accurately.
Archipelago trades about 25% of the volume of Nasdaq stocks.
Three weeks ago, Stack observed two back-to-back days of extremely lopsided volume in declining stocks--volume of such a magnitude that September 2001 and October 1987 were the last two times this measure of sentiment was so low.
Spear Leeds currently is the second-largest specialist, with 560 stocks and 22% of the share volume, while Bear Wagner is the fourth largest, with 366 stocks and 15.5% of the volume.
Foreign investors already account for over 60 percent of trading volume in Japanese stocks.
Total trading was the year's highest, with overall volume of New York Stock Exchange stocks exceeding 4.9 billion shares.
One forecaster, the Boston consulting firm Tabb Group, predicts that the NYSE will see its share of the trading volume in NYSE-listed stocks fall from 40% this year to 32% by 2010.
It also has the potential to be a problem for funds like Fairholme that hold a limited number of stocks (FAIRX holds just 20 stocks and seven bonds), but you need consider the average volume of each holding (aka liquidity) before viewing a concentrated portfolio as a red flag.
The SPY was up 3.3% in decent volume, which accelerated in the second half of the day when stocks moved higher in brisk trade.
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Several leading stocks have broken out of chart patterns on lower volume.
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Inherited from the 2004 acquisition of FleetBoston Financial, Bank of America Specialist Inc. is the third-largest market maker on the exchange, representing 429 stocks and 17.7% of the share volume.
Some stocks appeal to traders because of their price and volume action, while others appeal to investors who rely more on fundamental analysis: things like price-earnings ratios, sales growth, debt levels and the like.
The company's specialist arm now trades 426 stocks that account for 17% of the Big Board's volume.
In the spring of 2000, when stocks were hitting all-time highs and trading volume seemed limitless, the problem for Wall Street's titans was that upstarts were gobbling up a lot of the spoils.
Yet BP claimed to have in place sufficient booms, stocks of dispersants and skimmers to deal with a spill far in excess of the volume it is now struggling to contain.
In the forthcoming October 2010 issue of the AAII Journal, AAII Founder James Cloonan suggests looking for stocks whose average daily dollar volume is at least four times larger than your planned position.
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