The latest figures from the Nasdaq exchange shows that traders in the most-speculative part of the market, Over-The-Counter issues, picked up their pace of activity. These lottery-ticket stocks, also known as Pink Sheets or penny stocks, usually don't meet the minimum requirements to list on a major exchange.
When we see activity in these issues perk up, it's almost always after the broader equity market has done well, and vice-versa.
In October 2008, OTC volume made up only 73% of Nasdaq Composite volume, but by last month that jumped to 391%.
The previous record was 386% in March 2006, right before the Composite lost more than 10% over the next four months.
No comments:
Post a Comment