Tuesday, October 28, 2008

Colada Morada and Stock Markt Volume

I was out of commission there for awhile with a case of sinusitis that caused massive inflammation of my jaw. I swear to God that nothing ever hurt so bad in my life. but I woke up this morning and was pleasantly surprised that the bulk of the pain had vanished. good day to get back to work I figured, so I checked the markets and holy fuck! Silver's trading at like 8.80. so I buy a little. then I go take my antibiotic and a piss and get back to my desk and christ! Silver's 8.60. then I kept nibbling until lunch time. this is Dia de los Muertos week and the traditional treat here is 'Colada Morada' (a hot thick raspberry punch) served with 'Guaguas' (fruit filled pieces of bread vaguely in the shape of a body and decorated with dyed icing). pretty tasty stuff actually.

so I thought I was pretty smart getting some dat cheap Silver. but then I come back to the desk right about 3 pm and the damn Stock Markt's up over 10%! maybe some of you heard about this. they be partyin' like it's October 13th again.

well the market seemed less and less inclined to drop and often what happens when something declines to decline when it 'should' is that it decides to go the other way. shorts get impatient and start to cover &c. not a bad day for stock holders of Corporate America Inc. if you mind your manners there might be a few more good days before the year concludes.

wouldn't one have expected record or near-record volume on a day like today? but no, volume on the NYSE and Nasdaq was only a hair above the average of the last couple months.

from a chart standpoint if the Nasdaq and NYSE indexes can break above the downtrend lines on convincing volume then perhaps the market will be in for something of an extended rally. but if stocks move up from here and the volume wanes -- like it has on every attempt to rally this year -- then the likelihood that we have just seen a major low in stock prices should be seriously questioned.