Stocks Continue To Levitate

Stocks are slightly higher again in early trading, as they continue to levitate around recent levels, while trading volumes remain low. I don't remember the last time I saw the S&P 500 close in such a narrow range for this many days.

This morning's positive tone comes after gains in overseas markets, both in Europe and in Asia. Even China was higher last night, for just the 2nd time in 11 sessions.

The dollar is lower, and commodities are mixed. Oil prices are down a tad near $91.33, while gold is up a bit to $1411.

The 10-year yield was higher, but is now a bit lower to 3.45%; and the volatility index is down 1.6% to 17.23.

There are no economic reports today, and little in the way of market moving news.

Trading comment: With volume this light, I think people are just marking time until year-end. There are some stocks that are breaking out and showing nice action (MOS, ROVI, etc), but they don't have a lot of volume behind them.

I think it is possible we could see a headfake in early January, where the market initially rallies due to new money coming in and getting invested, but then pulling back into a correction as sentiment has just gotten too complacent here and a shakeout seems likely.

long MOS, VIX calls