The only positive from today is Monday’s have proven to be good buying days of late. But that’s the only thing. Clearly some complacency (“the bottom’s in” and etc) combined with light volume (SPY traded only 180 million shares Friday) allowed markets to be pushed higher by those who could do it. Getting sucked in with them has always been the danger as the game often is to dump their accumulated stock to you once you step in.



But, hey, the week’s young and we still have plenty of time left for bulls to pump it while the news may constrain that provided how they spin it. Then there’s that quad witch extravaganza on Friday to keep everyone entertained.
Volume was still light today and breadth…well, it was ugly.











McClellan Summation Index is still overbought but starting to fade.
























































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I’m giving my new computer its first workout. And things are going okay despite delays with installations of various programs. All in all, things seem fast and right. Now if I can only get these markets figured out everything will be perfect.


The current bought of light volume reflects a lack of conviction. We express that with high cash levels running between 70-80%. What positions we take are small reflecting a lack of confidence in markets overall despite some healthy advances overall. The biggest fear is a protracted trading range throughout the summer until we get to the meat of things in the fall. This is how things seem to be playing-out. But, then Mr. Market has his own schedule and my sense of things is as faulty as anyone else.


There’s plenty more to rock markets the rest of this week from tomorrow’s store sales, PPI, Redbook and industrial production. Then Thursday is keyed by jobless claims, Philly Fed, another Treasury auction and Friday’s quad witching. It will be entertaining if nothing else.