The summer doldrums continue, as today registered the 2nd lowest trading volume of the year (Source: Reuters).
As we’ve discussed, the last rally was rather uninspiring, displaying low and declining volume as the rally aged:
The downsloping volume trendline was “broken” a bit by last week’s decline. So while overall trading volume is low (it is August, after all), we are continuing to see more conviction on the declines than the rallies.
If the current decline continues, we’ll be plugged in to see if volume increases with the intensity of the decline…or if we continue to lollygag in the current range.
And finally an update on that September S&P short position – still got it:
And still in a holding pattern on it. It was not looking good for awhile, but gravity finally won out over the aforementioned “volumeness rally!”
While I don’t see this juncture as a “no brainer” shorting point, I’d also rather be short than long here (or out, too)…so for now, we’ll stay short. But just one position.