Tuesday, August 26, 2014

Low Volume Low Action

You would think SPX 2000 would get the traders excited and volume pumped up.  But yesterday was one of the lowest volume days of the year.  The action was overnight, with the healthy gap up.  By the time the regular market hours started, the trading range tightened up and there was little action.  7 point ranges during regular trading hours, after an 8 point gap up.  More is happening overnight than during regular trading hours.
There is not much opportunity for daytrading.  This is an investor's market, or a longer term trader's market.  September is coming up, and it is usually a bearish month, but with Draghi set to lay out his QE plans, I doubt there will be anything meaningful on the downside until Thursday, September 4, the day of the ECB meeting.  The Draghi backstop is there to protect the market till next Thursday.  I am not shorting this market and do not plan on shorting it till we get to September.


Anonymous said...

So you think market will just keep going up till next Thursday in Sept?

Anonymous said...

I bought yesterday in Facebook and think it can go up triple. Any thoughts?

Anonymous said...

Cup and handle

Market Owl said...

Yes, I think market will stay up till next Thursday. Don't think it will go up much, but probably won't go down.

I don't like Facebook long term, short term it will probably just follow the Nasdaq, which means it probably grinds higher.