Low Volume Market Continues

Low volume continues to rule the market. Wall Street loves to take the last few weeks of August off and leave the trading to their junior staff. This is simply an ultra tough environment to find healthy growth stocks and make money! The past few Augusts we have seen follow-through days, but each one we get tends to get worse. Our most recent follow through is even more dismal than last year.

Low volume, is a death trap for growth investors as they will lead to further selling. Stocks should be taken with a grain of salt at the moment and should not be accumulated heavily.

This market is terribly boring with the lack of nice charts out there. Most are simply filled with choppy price action and distribution. In addition, new lows continue to beat down new highs and now VIX is below 20.

Our lovely market is not setting up for a tremendous bull market run. At some point, we are going to get selling that will see volume rise. We need a washout bottom, but I have no idea when or where it will occur.

For a washout to occur, VIX needs to jump to 40-50 to signal capitulation or a washout. At its current level that is a 112% gain just to hit 40. Something that is not likely to occur but can.

This market is extremely frustrating to those who are looking for action, the patient prudent professional will be able to hold out for a washout and strike when a powerful new bull enters.

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