IS EVERYBODY WATCHING THE WORLD CUP?

Because the stock markets are so boring and quiet. The noise is zzzzzzzzzzzzzzzzzzZZZZZZZZZZZZZZ on the floor. The volume is pretty low and around 5.7 billion shares changed hands yesterday on Wall Street, 7.5% below the three-month average. The US benchmark indices are at range and couldn’t retest their tops and couldn’t drop significantly neither.

U.S. stocks ended Tuesday modestly higher, with the gaining for the third consecutive day and Russell 2000 was the winner once again as we stated couple of weeks ago that Russell is best bet. The small cap index closed at its highest level in more than two months.

• S&P 500 +0.2%
• DJIA +0.2%
• Nasdaq +0.4%
• Russell +0.8%

There is another interesting pattern. Remember when Tuesday was the winner? In May everybody was talking about this must be a new strategy, buy Tuesdays. And, what is it now? In the last month Tuesday was mostly a plunging day. Once everyone noticed, it stopped working further. That is the magic of the market.

The BFM Assets Team.