DRIP Investor

Weekly Commentary Archives

Charles Carlson, CFA
Editor, DRIP Investor Newsletter

Vacation's Over
8/30/10

I always caution investors not to read too much into market trading this week.

Many market players are out of the office, taking advantage of the last gasp of summer.

Thus, trading volumes tend to be on the low side. And those low trading volumes generally aren't reflective of the market's underlying trend.

We will get a much better idea on investor sentiment following Labor Day, when everyone is back at their posts.

The key point to watch continues to be 9686 on the Dow Industrials. If the market can hold above that level, you can expect a retest of the previous high of 11,205. However, a close below 9686 would likely lead to aggressive selling.