For all those bulls out there ailing from a condition of geo-political turmoil, Monday’s post-holiday bounce off the lows had everything the doctor ordered… well, everything except volume. It’s a fundamental premise that markets are fueled by volume, yet (seemingly when it’s most convenient) hopeful bulls are always a bit too willing to take the “low-volume rally” pill to cure their ills. While it is true that markets have been known to soar on low-volume (the opposite is also true btw), April has yet to log any accumulation days, so waning institutional support is something to look out for. Bears on the other hand need to keep in mind that earnings and other reports are kicking in this week, which could very well force managers to chase. In either case, the only remedy either side can really count on is time. -MD
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