What else is higher on very low volume? BIDU, GOOG, LULU, even LVS. But momentum vehicles like NFLX (slightly up) and GSVC (-2.1%) are also middling. This market looks and feels fake to me.
Financials are heavy green. My Debt Spiral list is entirely green, led by NBG (+36%) on the Greek bank news. FAZ is down nearly 11% to below 53. By my rule of thumb, FAZ has been a buy below 55 in the past month. But this is why I don't dip into these waters often. Anything can happen overnight, over a weekend, and finnies explode despite a real core of toxic assets. The roots of the system are rotting and dying, and nothing changes that in a week, a month, a year, maybe a decade. The will to stop this financial meteorite from destroying our monetary system as we know it just doesn't exist. In other words, I won't touch finnies, and when they run out of momo, I'll park a little bit in FAZ.
If 0% interest turns out to be QE3 and we have another meltup-on-low-volume rally, I'll probably miss a chunk of the gains. But fundamentally, what has changed? Not a single constructive solution back home. As Brother Turd Ferguson forecasted, with London on holiday, thin trading has spot gold and silver down slightly today. DGP is down 3.5% (64.98) and AGQ is down 4.7% (213.73). I'm prepared to buy on this dip, not sure if I'll do it yet. I remain all cash for now.
Update 9:27 am As I noted earlier, thin volume today has a very sketchy feel for a lot of watchers. Here's a note from Karl Denninger at Market Ticker.
Nobody is talking about this. That's 27 - twenty-seven contracts - on the bid at 1146.75. During the trading day. There's less than a thousand up and down the stack through the entire visible portion.
This is a tiny fraction of normal liquidity and those sub-100 numbers are more-akin to what you expect in the middle of the night when everyone's sleeping!
All that's left is the computers. The humans have gone home.
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