Ernesto East, Stocks North!

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 |  Includes: GLD, QQQ, SPY
by: David Fry

Ernesto zigs east and stocks move north.

There continues to be an ample supply of liquidity within hedge funds and trading desks to move markets higher, and very little evidence of any selling pressure today except in the commodity markets.

The danger for investors may be that current buyers' major aim is to drive prices high enough to cause buying from other sources after Labor Day — a classic pump and dump situation.

Elsewhere, volume today was extremely light and conditions don’t merit much commentary frankly. Don’t forget, on Friday comes the employment report and that should shed more light on economic conditions.