This morning a trader speaking on CNBC was asked what the “big news” of the day would be. Or, what would drive the direction of his trading. His answer was “nothing”.
We have commented several times in the past few weeks, that these quiet markets have most professional investors perplexed and/or cautious.
Volume is low, the trading range is tight. Neither good news nor bad news seems to move the markets much.
This will not last forever, and the $64,000 question is, will this inflection point move us dramatically higher or lower. It is impossible to guess, but there is certainly more good news than bad. My answer would be that we will head higher in the second half in anticipation of much firmer footing in 2011.
