Market Chasers

Astute Market Observations: March 10th, 2010

• The market is timid. We continue to move up, yet volume continues to be sheepishly low. In many sectors, volume is actually shrinking. It seems the only sector that is actually being bought with confidence as far as volume is concerned are the financials.
• The market continues to move up, defying technicals that even the docile village idiot could understand. Institutional traders as well as small day traders are dumbfounded. I for one cannot understand how things like a strengthening dollar and continuing global weakness can support our continuing rise.
• The smell of short selling is in the air. Many people are priming their muskets to short the market but it is a matter of when the time will come. As I stated above, the market continues to rally and confuse people in the process.
• Why are cyclicals the best performing sector in the S&P 500 so far this year? Shouldn’t materials or industrials be the best if this was truly a recovery?