Breaking news: There has been a precipitous rise in both online poker activity and napping during early 2012, most notably between the hours of 8:30am and 3:15 pm CST.
From the financial floors to the computer screens, the trading universe has been bored, bewildered, and baffled by the lack of volatility. The markets have been on a slow upward grind with the intra-day trading ranges being historically small. For example, the majority of German & Bernanke-led explosion on Monday traded in a pathetic 4-point range until the late spike took hold. Tuesday was worse; it also had a ridiculously narrow intra-day range coupled with one of the lowest volume days in months if not years.
Is there any hope to break out of these depressing market conditions? It’s difficult to decipher considering the world isn’t really that much different from August-October 2011 when 30 point trading ranges were commonplace.
While the European Sovereign Debt crisis is no longer at code red, Portugal, Spain and Italy to name a few, have yet to emerge from the recession or lower their debt to GDP ratios and budget deficits. In a nutshell, they still have way too much debt (and growing) with too little economic growth (and shrinking) to really improve their situation.
Here at home the MF Global money still can’t be found, the “recovery” limps along with anemic job growth and a still-cratering housing market. Meanwhile, Benny & The Inkjets continue to print more money – or promise to print more money at the drop of a hat, just like lead singer Benny did Monday.
It’s ironic that this bull market is indicative of the more somnolent bear. Let’s hope volatility was hibernating this winter, and will soon join the spring bull or bear.
Trade well and follow the trend, not the so-called “experts.”
Best Trade to You,
President & Founder - TradingAdvantage