Another low volume no news rally. Today looks to be another culprit of the window dressing effect. The S&P finished higher by 0.91%. Bank stocks finished the day higher by more than 1% while tech, small caps and transport stocks were noticeably weak. Oil was strong once again and finished up over 3% while natural gas lost 3.8%.
Holiday weeks tend to be low volume with a positive bias so it won’t be surprising to see this low volume upside continue. The real test will begin next week as earnings pick up momentum and the seasonally strong commodity trade reverses.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.