When volume drops off, prices settle down. Volume is the force that turns stocks higher.
Sentiment: POSITIVE
Volatility may be rising simply because investors must digest more information every day.
Increasingly prices are set by sellers to raise their prices without a loss of sales sufficient to wipe out the gain.
If some stock categories get too hot-and-pricey, mass supply is created via stock offerings to tap that cheap money - and, when overdone, drives it all down.
When stocks are attractive, you buy them. Sure, they can go lower. I've bought stocks at $12 that went to $2, but then they later went to $30. You just don't know when you can find the bottom.
The lower spreads mean lower costs for investors, because Nasdaq investors generally do not trade directly with one another. Instead, they usually buy and sell from market-makers, brokerage firms that flip shares between buyers and sellers and keep the spread for themselves.
Stocks change. Industries change. But the underlying reasons certain stocks are good investments remain the same. Only the fullness of time reveals which are the most sound.
I think you have to learn that there's a company behind every stock, and that there's only one real reason why stocks go up. Companies go from doing poorly to doing well or small companies grow to large companies.
Like a bank run, a decline in stock prices creates its own momentum.
Generally, a rally will have staying power, technicians say, if, in addition to price movements, it has heavy trading volume and breadth, meaning that several stocks rise for each stock that falls.
Sometimes it takes longer to create value, but if the companies generate more earnings, the stocks will ultimately reflect that.