This is from Sentiment’s Edge by Jason Goepfert. The trading on the pink sheets, over the counter penny stocks, is the tail end of the move to risky assets, stocks and commodities, from safe assets like Treasury bonds that has been going on since March 2009.
There are some nuances to this data, but the chart below is telling. It shows the number of shares traded in “pink sheet” stocks (which aren’t mature or stable enough to be traded on Nasdaq), which surged to 45 million during May.
The average price of the stocks traded on the OTC last month was $0.02 (the second-lowest price/share in history), and the number of shares per trade was 76,600. The only time these gamblers traded more shares per trade was March 2006.
0 Responses
Stay in touch with the conversation, subscribe to the RSS feed for comments on this post.