Avoid Stocks Making New Highs on Low Volume

 

In the stock market, a great company is like a high-performance Porsche, and volume is the stock’s fuel. You can blather all day about the company’s potential, its fabulous new product, its incredible CEO. But if the company’s stock, after making a great run, begins to hit new highs in low volume, it will likely cease to act like a high-performance roadster.

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