Zeev's Turnips Patch-No Politics (ZEEV)

[marketmaven]

I Stand Corrected- Barfing.com laments low volume....
(But, hey, that Ivan really is a monster...)

Disappointing Volume Amidst a Stealth Rally: Volume on the NYSE was only 1.2 billion shares yesterday. Volume has averaged over 1.4 billion shares for the year, and back in May 1.4 billion shares was considered low. The action simply has not yet returned.

This partly explains the sluggish nature of the market yesterday. There was talk that traders were disappointed that the Fed's Beige Book report on the economy presented a mixed outlook and noted softer conditions in some regions of the country. That really isn't a surprise, however. It is now conventional wisdom that consumer spending has slowed and the most recent GDP numbers have been mediocre.

That accepted view that economic growth will be moderate may actually present the market with an opportunity, as discussed in the this morning's Big Picture column. If growth does pick up, as Federal Reserve Chairman Greenspan suggested in his testimony yesterday, such good news could have a significant impact, given current low expectations.