Online Stock Trading | Stocks Will Stay in Limbo while Volume will be light

Stocks Will Stay in Limbo while Volume will be light


Filed Under Market Commentary |

Volume sunk to pre-holiday lows as the Nasdaq slid 1.1% for the week. Not much excitement from the prior week. BTJ saw a gigantic surge in volume ending the week at 19.00. My only holding that saw a huge increase. Otherwise, the week was boring. Volume was low and the action tame. Clearly the big boys, institutions are sitting on the sidelines.
According to the Stock Almanac the week prior and after labor day historically are the lowest volume weeks. This week we’ll continue to see extraordinary low volume. Quite boring, many stocks will be taking a breather this week. Look for oil stocks to breakdown as I continue to see oil move lower.
Ernesto has been upgrading to a hurricane and now downgraded. October futures contracts should feel the pressure along with oil derivatives as heating oil and gasoline futures. Gasoline futures will find support with the upcoming Labor Day holiday but this will only stop the slide from becoming a free fall. Again, the 7/14 exhaustion gap is holding in place too much money has chased oil for too long.
The stock market is boring and will continue to bore until we start seeing some decent breakouts and new leaders emerging. Geopolitics will dominate news, North Korea will start to come to the forefront will Iran will take a close second.
Remember, if any new positions are taken they should be SMALL, real SMALL. Low volume weeks do not lend themselves to produce big winners.
Enjoy and see you at Investors Paradise!
MktSpec

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Comments

3 Responses to “Stocks Will Stay in Limbo while Volume will be light”

  1. kunpar on August 27th, 2006 7:17 pm

    Low volume doesn’t mean that you can’t get any gains. I like your post, but we can still see gains in certain sectors such as airlines and biotech as soon as more earnings come out.

  2. Market Speculator on August 28th, 2006 7:37 pm

    Biotech is hit and miss…you certainly can make gains but you aren’t going to hit homeruns. The ERS’s that run up 500%. Do you remember TZOO in ‘04 from Aug to Dec? It ran from 20 to 100.

    If you do want to take a position make it small. Low volume environments can lead to whicked snap backs.

    Good luck kunpar

    MktSpec

  3. kunpar on August 28th, 2006 9:44 pm

    hey, I placed the html in the template rather than using the adsense toolbar. How’s google ad’s workin for ya? People clicking? Seems like they make it seem that u’ll get a bunch of money outta it but its really a hit or miss, tty soon

    kunpar

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