Volume Now vs Past – The fastest 20% drawdown in history had a lower volume than events like the 2008 crisis.

by -TiredOfAllThisShit-

I know volume is somewhat irrelevant for our analysis but every time I open a chart on a stock, I realise the stock’s volume is not at all comparable to what it was verified in the financial crisis.

Obviously we are still in early stages and we don’t know how severe this year is going to be, but in late Feb / early Mar investors were selling everything, regardless of the underlying fundamentals. For this reason I’d expect a higher volume than what we have been seeing so far.

So I quickly gathered monthly data since Jan 1st 2000. Here are the top 10 volume months for the three major indices:

Date SPY US Equity Date DIA US Equity Date QQQ US Equity
Jul 2008 7,159,685,514 Aug 2007 542,456,367 Aug 2007 3,837,603,700
Sep 2008 8,107,004,009 Jan 2008 473,817,559 Nov 2007 4,568,289,702
Oct 2008 11,889,533,913 Jul 2008 575,679,842 Jan 2008 4,830,052,723
Nov 2008 8,769,772,411 Sep 2008 698,767,530 Mar 2008 3,405,461,791
Dec 2008 6,931,852,768 Oct 2008 1,007,324,974 Jun 2008 3,543,244,113
Jan 2009 6,877,054,936 Nov 2008 777,343,900 Jul 2008 3,953,850,942
Feb 2009 7,275,971,509 Dec 2008 577,907,423 Sep 2008 5,191,355,670
Mar 2009 8,816,278,923 Jan 2009 619,041,379 Oct 2008 7,243,672,958
May 2010 7,414,147,699 Feb 2009 651,131,497 Nov 2008 3,920,998,019
Aug 2011 9,050,591,972 Mar 2009 604,531,737 Mar 2009 3,807,881,648
Mar 2020 5,926,710,256 Mar 2020 254,996,463 Mar 2020 2,191,775,633

Again, this is not relevant for our analysis, but I still find interesting to discover that the fastest 20% drawdown in history had a lower volume than events like the 2008 crisis.

 

Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.