All-Time Highs on No Buying Volume? Does It Matter Anymore?

NEW YORK (TheStreet) -- The stock indexes continued their move higher on Monday. The DJIA was up 175.83 points to close at 16838.74 while the S&P 500 was higher by 16.68 to finish at 1971.74. The Nasdaq was up 43.39 at 4508.31 and the Russell 2000 closed at 1158.40, up 16.75 points.

Once again, the buy volume was a pathetic 74 million shares traded on the S&P 500 Trust Series ETF (SPY)   That was 48% lower than Friday. As I have been saying for a long time, the up day volume continues to decelerate and the down day volume continues to accelerate.

Read More: Warren Buffett's Top 10 Dividend Stocks

Say what you may, this is extremely important. If traders disregard this fact, they are not being very open minded in their risk management process or they have no risk management process.

The Wall Street media and market pundits that do not discuss this fact when speaking of the bull market, turn them off. They are misleading traders in their analysis.

As I have been mentioning for the better part of 2014, the hedge funds are in total control of this market. That is the main reason for the lack of volume. The small investor and trader is gone. The hedge funds can take this market as high as they want to or as low as they want.

Thus, record highs in the indexes are irrelevant to me. They are merely talking points that the public likes to hear about. They are meaningless with no buying conviction or volume.

If you liked this article you might like

Stock Observations; Reviewing Equities: Doug Kass' Views

Even North Korea's Kim Jong Un Can't Stop This Epic S&P 500 Stock Rally

Robots Might Be Biggest Obstacle for Stock Market Bears

This Simple Indicator Is Hinting at an Imminent Stock Market Plunge

Investors Waiting for Disaster?