Bored

Good-bye. I am leaving because I am bored.
— George Saunders’ dying words

Stock market liquidity has dried up to nothing and I’m guessing it will remain this way until September 4th.   Since I’ve aready used my Summer vacation, I’ll be focusing on catching up on some research over the coming week.  I would suggest that if you are an active trader, that you do the same.  Reading a good trading book or catching up on some research will probably be much more worthwhile than sitting in front of your trading screens. 

But just in case you don’t believe me, here’s what you’ve missed this year….   

Spx_bored_082506 

And just in case you’re contemplating shorting this boring market because you see the stochastics crossing at the top, I’ll point you to the weekly chart.

Spx_bored_weekly_082506

The weekly stochastics are still rising strongly, indicating the market is probably primed for one more rally before there’s a good risk to reward ratio in shorting this boring market.  For now, enjoy the last few days of summer.

4 thoughts on “Bored”

  1. I hate this rally. It is weak and pathetic. Advance/decline data does not tell the whole story. Now, maybe we’ll gain some traction but we have never had a rally post 2000 with these dynamics that were nothing more than a workoff of the oversold condition. Could be a first but I wouldn’t be betting big sums on it.

    The action is so flimsly we get whiffs during the day that take the market down a tenth of a percent in ten seconds. It’s a high probability setup. While the parents are away…………

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