What volume is it?
by Richard W. Arms, Jr.
Markets often seem unpredictable and erratic. They give the impression of being disorganized because
they do not always behave as we think they should. We live by clocks and schedules, yet all too often
prices do not behave in such a manner as to meet our schedules. Therefore we think they are illogical,
Perhaps, however, it is our own lack of perception into the market that is the cause of our frustration.
Maybe we are trying in vain to impose on the market our world of clocks and calendars. Could it be that a
better measure of the market is volume rather than time? If so, maybe we need to readjust our thinking
rather than declare the markets illogical. In the market, volume — shares or contracts traded — can be
thought of as "work done." If there is no trading, nothing has happened, even though time may have