Final 20 Minutes Tell The True Story Of Today’s Action; Volume Continues To Vanish As We Head Into The Labor Day Weekend

August 27, 2007

There really is not a whole lot to talk about when it comes to today’s action. About the most significant thing I could find underneath all the data today was that there were more new highs than lows in the market where the SP 500 and Nasdaq both closed lower. This is positive divergence in a day where the market did not appear to have anything positive going on.

The final action in the last twenty minutes seems to, however, indicate that the market is feeling a little bit overbought here and is finding no trouble working off the excesses quite quickly and swiftly. The put/call ratio also dipped under .9 today, confirming that the crowd is getting a bit complacent on this low volume rally. Which is exactly what this is; nothing more and nothing less.

The bias should continue to be to the upside for the rest of the week, as it is never wise to bet or short a dull market. And dull market is probably what we have a lot more of. I am taking that cue by the fact that I was offered only one new short and no new longs tonight. There is simply nothing going on and that will probably remain the theme as we go into the Labor Day weekend.

I apologizing for making this short and to the point but I had to deal with an unexpected personal emergency. Everything is fine now but this is the reason for the lack of depth with this report. I shouldn’t be distracted for the rest of the week, God willing.