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The RBA as expected kept rates on hold at 4.75% but offered a relatively subdued assessment of Australian economy suggesting that monetary policy will remain stationary for the foreseeable future
There are a lot of geopolitical events going on in the world right now that should certainly help the trading volume, however, the volume is simply horrible. Traders and investors must remember that it is very difficult to sell short dull markets and this is as dull as it gets. Today the major stock indexes are struggling to stay positive. If there was trading volume today the major stock indexes would likely be trading down further. When there is light volume there is simply no selling pressure and this is something that traders must understand and respect.
They say the telltale sign is a measure of co-movement, or the likelihood of stocks to move in the same direction. When a market is healthy, co-movement is low. But in the months and years before a crash, co-movement seems to grow.
http://www.wired.com/wiredscience/2011/03/market-panic-signs/
John Murphy has written extensively about Intermarket Analysis - the study of the key relationships between the four major financial markets and how those markets affect each other in the long run. To study Intermarket relationships we use our Intermarket PerfChart that displays the percent performance of the major index for each of the four markets - $SPX for stocks, $CRB for commodities, $USB for bonds, and $USD for the US Dollar.
http://stockcharts.com/help/doku.php?id=support:chartwatchers
Geopolitical supply risks also had oil traders wary of being too short at the weekend, as Libya's undecided conflict and Middle East unrest persist and elections near for OPEC-member Nigeria, brokers and analysts said.
http://www.reuters.com/article/2011/04/02/us-markets-oil-idUSTRE72D01W20110402