Wednesday, August 26, 2009

Cautious market

We often hear reports of and commentary on the volatility index. If there were such a thing as a non-volatility index, today's trading may have been a record. Volumes were exceptionally light, the DOW moved slightly over and slightly under positive 25 times during the trading session, and finding any stock that made a material move up or down was almost impossible. This was a day of caution.

Some say it's the end of August doldrums. The traders and managers are all at the beach. That may be an explanation for any given day, but don't believe it for a second if there's any real news that suggests activity. Those days of a securely lazy market in late August are long gone. Asia news already looks like tomorrow will see more activity. If that news holds commodity related stocks will be down but big strong multinationals could be up.


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