Friday, November 20, 2009

On Thin Volume

It's been noted repeatedly that the recent trading has been on thin volume.With next week being Thanksgiving week,that isn't likely to change.When trading volume is light,the market lacks a certain something-the ability to convince.It means there is an abundance of caution on the floor.In the current case,it also means the retail investor is still absent from the process.There's a lot of money on the sidelines,we are told.If the sidelines go on and on,they aren't sidelines anymore;they are the playing field.A new normal has arrived.It's like the aftermath of battle.We stand in the financial rubble,all too glad to get out for a day,eat some holiday food and watch some sports with our long-lost families.Only the equivocal data suggest the post-holiday won't be any different from the pre-holiday.The long,slow healing is our way of life for the foreseeable future.

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