Friday, April 08, 2005

Stock Market Commentary for Saturday, April 9, 2005

The almost-sharp Nasdaq 19.44-point decline on Friday was simply an unwinding of the unsustainable short-covering that we saw on Thursday.  The kind of very light trading volume we saw on Friday usually begets volatility that can be way out of proportion to actual market sentiment.

Money does continue to flow into the market, but not with enough consistency to prevent short-selling on those days when inflows are not there.  Expect more of this volatility in the coming months.

Nasdaq trading volume was very light (1.53 billion shares), and breadth was strongly negative, with 2.19 losers for each gainer.  The point decline was disheartening, but volume was way too light for the pullback to have any significance.

Click here to read the entire column.

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