Heavy Volume Surge

The essence of shrinking volume is the absence of market divergence. Rising prices on shrinking volume indicate broad bullish sentiment across the market, while falling prices on shrinking volume reflect consensus bearishness.

The essence of expanding volume is significant market divergence. A rally on heavy volume signals substantial disagreement, with bulls briefly outnumbering bears; a selloff on heavy volume also reflects deep disagreement, with bears temporarily outpacing bulls.

Buyers during a high-volume surge will almost certainly become sellers in the future. They are, by definition, short-term speculators chasing easy profit differentials, and they will inevitably look to sell collectively at some point. Expanding volume exhausts bullish momentum; once follow-through buying fades, those earlier "bulls" will quickly flip into… Moreover, a sharp, high-volume price spike can tempt company founders and executives to think: Why keep running the business? I might as well sell it to you, hand over the reins, achieve financial freedom, and walk away. Isn't that the simple logic at work?

Every buyer in a surging, high-volume environment is there to flip for a quick profit—not a single one intends to become the owner. That is precisely why any healthy market should favor slow, steady gains on moderate trading volume. Under such conditions, existing founders have little incentive to sell down their stakes. Even if they wanted to offload shares in bulk, there simply wouldn't be enough buyers. Consequently, they are forced—or rather, compelled—to stay focused on running their businesses well. Over time, valuations climb, earnings grow steadily, and revenue compounds.

And before anyone notices, it has been a hundred years. Business owners and investors have mutually elevated each other.