Starting off the first week after the official end of the summer break the market volume has been increasing but overall activity remains quiet. The S&P 500 (SPY ) has remained near the high of the recent range hinting at a new breakout. The Nasdaq 100 (QQQ ) has been able to break to new highs but in a a fashion that leaves many wanting more. While the move has been consistent, traders note the lack of commitment from the new bulls. The Russell 2000 (IWM ) has been the steady horse in the race as it pushes to new highs seemingly every day. With consistent buying pressure, investors seem content adding risk to this slow and steady rally.
Bonds (TLT ) remain flat and inside of a now 2 month range. With very little in the way of excitement, rates have held steady with very little concern for the next move in Bonds. The choppy action has led many to hold off on placing new trades here which has led to a minor decrease in volume.
In more exciting news, Gold (GLD ) has has a nice 3 day pop, edging it closer to all time highs once again. While Wednesday was more of a temporary pause, there is no ignoring the strength recently in the precious metal. The move has also given a boost to the miners (GDX ) which have enjoyed over a 13% gain since last week. Again, a quick and swift 3 day bounce has accounted for all of the recent gains.
Part of the Nasdaq strength has come from the Tech Sector (XLK ) which moved to new highs last week and has been consistently moving to new highs each day since. There is no doubt that the technical analysis traders have flocked to the tech sector in anticipation of further moves north.
Lastly, we have volatility (VXX ). While there continues to be more and more concern about a market pullback, the volatility markets would disagree. Media personalities continue to tout the need for protection yet traders seem to turn a blind ear. The volatility index continues to push to new lows each day yet the buying pressure has been steady. Could this be the large traders scooping up volatility at these low prices?
