Wednesday, August 27, 2008

Churn

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Mindless, numbing churn.

Down 200 points, then 2 days later up 200 points, then 4 days later down 150 points, then 3 days later up 150 points.

A 1 month chart of the S&P 500 below - we're at the identical spot we were almost a month ago. Showing us on the path to nowhere. Nothing but a traders market. The only people making money are brokers handling the trades. It is getting mighty monotonous at least from this seat.

Here is a 2 month chart below. Yes we had that dip in mid July, and if you bought it and flipped out in a few weeks you made some change, but we are EXACTLY where we were 2 months ago as well. Churn.

A lot of punditry analysis day by day about why the market is up by this amount or down by that amount, and why that day's action "signals" a bottom in this or a top in that. But when you take a few steps back, you see complete random action leading to nothingness. Volume falling off a cliff these past 2 weeks. People abandoning (or vacationing) this randomness where no trade is safe for more than a few days or weeks at most.

A trendless market that is signaling nothing other than it is clueless. Sorry, I'm not jumping up and down and screaming how today's rally once again signals this or that. It signals the same thing it's been signaling for 60 days: nothing.

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