Academic

IS THE STOCK MARKET RALLY TOPPING OUT? My answer is, as usual, who knows? But this bit interested ?

By Glenn Reynolds

IS THE STOCK MARKET RALLY TOPPING OUT? My answer is, as usual, who knows? But this bit interested me:

However, traders have been concerned that on several days in the past week, market volume was dominated by heavy trading in low quality financial names, like Fannie Mae [FNM 2.04 0.12 (+6.25%) ], Citigroup [C 5.23 0.18 (+3.56%) ], AIG [AIG 50.23 2.39 (+5%) ] and Freddie Mac [FRE 2.40 0.16 (+7.14%) ]. “If you took the top traded stocks and gave them normal volumes, overall volume would be down 30 percent,” said Hogan.

So much of the “rally” is in junk-financial stocks for companies that are, basically, controlled by the government? I’m not sure exactly what that means, but it’s hard to see it as anything promising.

UPDATE: A reader sends this link, which leads to this post at Zerohedge. What it all means, if anything, is, er, above my pay grade.

Full post as published by Instapundit.com on August 29, 2009 (boomark / email).