ODD-LOT PURCHASES/ NYSE VOLUME   

Odd-lot transactions are made by small investors who can not afford to buy or sell short a round lot of 100 shares of a stock. In the old days this indicator reflected the activity of the smallest of the small guys who were usually dead wrong at bottoms and tops. Since the introduction of options however it has lost some of its value. Year-end tax selling and subsequent reinvestment distort the odd-lot statistics as well  in the end of December and  early in January every year. But the odd-lot purchases are nevertheless an excellent indicator to measure prevailing bullish sentiment of the crowd in the market. The chart below shows the weekly odd-lot purchases divided by the weekly NYSE volume on a 4-week moving average.