INVESTORS NEED A BOOST
Politics were center stage today with Healthcare law deemed unconstitutional on a first round verdict while the Senate seems ready to approve the tax deal. In the meantime investors seemed to be biding their time. This is probably the last busy week of the year with lots of data and quad-witching.
Volume remains weak and bulls are just hanging around it seems "managing" the market to the year-end.
The dollar rally faded today, bond prices rose slightly and commodities rallied. There was also the obligatory
activity of nearly $8 billion Monday.
Breadth was flat to negative and volume was especially light once again per WSJ data.
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is a market breadth indicator that is based on the difference between the number of advancing and declining issues on the NYSE. When readings are +60/-60 markets are extended short-term.
McClellan Summation Index
is a long-term version of the McClellan Oscillator. It is a market breadth indicator, and interpretation is similar to that of the McClellan Oscillator, except that it is more suited to major trends. I believe readings of +1000/-1000 reveal markets as much extended.
is a widely used measure of market risk and is often referred to as the "investor fear gauge". Our own interpretation is highlighted in the chart above. The VIX measures the level of put option activity over a 30-day period. Greater buying of put options (protection) causes the index to rise.
Continue to Concluding Remarks
It isn't too surprising that volume remains light. After all there is an FOMC rate decision Tuesday afternoon and despite the fact nobody is expecting any policy changes, waiting may be the best policy. After all the Fed is in new policy territory.
Tuesday will also feature Retail Sales, Business Inventories and the PPI.
Let's see what happens. You can follow our pithy comments on
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