29 April 2013

SP 500 and NDX Futures Daily Charts

Stocks rose today on a better than expected pending home sales number.

The volumes were remarkably thin.   You know what they say about shorting a thinly traded market -- don't.  But you may not wish to establish investment positions in them either.  Thin markets are often a prelude to volatility.

You know what I think about this market. Do not get in front of because the Fed is feeding the trade, and providing what is likely to be seen as a false sense of recovery and complacency that can turn on a dime, or stray bit of bad news.   But in the meanwhile it serves the more agile financial interests to keep it floating higher on a crest of easy liquidity.