MBS OPEN: Slow, Stock-Driven Monday
The term "slow" can be sometimes be misleading in this context. Although the absence of scheduled data combined with Yom Kippur's attendance toll are seen hurting volume, low volume doesn't always connote price stability. In fact, it's in the midst of low volume that any given trade accounts for a bigger piece of the daily pie meaning that price direction can be influenced by fewer participants. The saving grace here is that high volume trading tends to be much more indicative of the actual trends. That doesn't mean that movements on days like today don't matter, but rather that we'll likely be waiting for volume to pick up this week before making a more austere assessment of where we are and where we're going. Hopefully that helps put any frustrating fluctuations in perspective today as we're leading off about 4 ticks lower so far this AM….(read more)
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