Online Stock Trading | Markets rise without volume

Markets rise without volume


Filed Under Market Commentary |

Monday kicked off with stocks headed for higher ground. Merger and acquition news swept Wall Street lifting stocks but without any institutional backing. Volume subsided across the board, from my numbers NYSE volume slid 30% from Friday’s numbers and the NASDAQ sliding 26%. Here is how the market ended:

Dow 12,226.17 +115.76 (0.96%)
Nasdaq 2,394.41 +21.75 (0.92%)
S&P 500 1,402.06 +15.11 (1.09%)
Russell 2k 787.05 +8.28 (1.06%)
S&P 400 832.57 +8.68 (1.05%)
S&P 600 404.01 +4.13 (1.03%)

Today’s action smelled that of a short covering rallies. The tremendous lack of conviction in the market today leads me to believe that the big boys aren’t willing to step in here and make things happen. Rather, they are waiting to unload shares into the market. Looks like we’ll be seeing this type of choppy action for awhile.

Cash is the place to be, not adding or starting a new long position is wise. The market is searching for a bottom and I believe has yet to find one. But, we’ll let the market decide, for now let’s stay on the sidelines with cash to deploy when this thing turns around.

Aloha and happy trading
MS

marketspeculator@gmail.com

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