NEW YORK (TheStreet) -- Well, the S&P 500 index closed at a new all-time high on Wednesday at 1987.01, up 3.48 points. This was all accomplished by volume that was -- you guessed it -- pathetic. The S&P 500 Trust Series ETF (SPY) volume came in at another dismal 60 million shares traded.
To put this in some time of perspective, the volume on up days decelerates and volume on down days accelerates. The volume on Tuesday was down 16% versus its one-month average. Over its three-month average the volume was down 19%.
So, while all Wall Street pundits focus on the new all-time highs, I focus on the fact that there is no volume in this market. The marketplace is controlled by the hedge funds because there is no other players in the market. So, all-time bubble highs need to be put into proper context.
The precise timing of those trades are as follows: Buy the stock right before the close on the upper channel break and sell it the following day after the market opens. That is where the momentum players come in and buy the stock to move it higher. On Wednesday, I sold my Digital Realty Trust (DLR) for a nice gain as an end-of-day momentum play and sold my Beacon Roofing Supply (BECN) for a better than 1% gain. I added to my Arcos Dorados Holdings (ARCO) and started new positions in Inovio Pharmaceuticals (INO). I also shorted Microsoft (MSFT) at the close. At the time of publication the author was long ARCO and INO and short MSFT.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.
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