There are several things happening this week than can cause some strange market action. First of all, it’s just a three and a half day week in front of a major holiday. So volume is likely to be light. Also, the Russell index is rebalancing this week. All the buying and selling that takes place to do that can create some interesting action. And at 10: 00 AM (Eastern), the Chicago PMI number is coming out. That’s also one that in the past has been known to create some volatility. Right now it looks like a strong opening.
It appears that for the last week or so every time the market opens higher it can't hold on to any gains. Do you think this is the individual investors buying in driving the market up and then the commercial traders selling into every rally?
Gary
Re: Re: A Volatile Week?
June 30 2003, 4:08 PM
That’s clearly what the pattern was according to the last COT report, Gary - small speculators buying and big commercials selling to them. Today is the last day of the quarter and the end to any window dressing tendencies. Volume for the rest of the week should get lighter and lighter as traders start to leave town, leaving the market vulnerable to directionless, random spikes in either direction.