Investors STILL Staying Low...

I must admit I was wrong...

I thought investors are waiting for a favorable GDP number (which we got today) before jumping into the bandwagon, however, trading volume remains dismal today (although a little higher than yesterday) in the NYSE and those few sellers managed to bring prices way up for those few enthusiastic, excited buyers in the market. These additional buyers were probably short term bond traders as short term bond yields rose slightly today (see bond yield curve). This made today's GDP-rally of over 200 points on the Dow very unreliable. In fact, options traders were also not too excited as put call ratio remained stagnant (see Put Call Ratio). Are investors skeptical of the long weekend ahead? One thing's for sure, significant and sustained drop in trading volume usually signal the end of one trend... it does seem like the market is cocked for one big trend change soon. Seriously, the economic front still look mixed but showing signs of a pick up. For now, the Dow continues to be in a short term neutral trend.

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