Even though the market might toss and turn over this week's data on home sales, durable goods orders and gross domestic product, the months-long pattern of sleepy, range-bound trading is likely here to stay -- at least until the midterm elections, says Jason Weisberg, a trader and senior vice president with Seaport Securities Corp.
"The market has the emergency brake on [until the elections] and the long-term investors have fled the market," Weisberg says. That helps explain why volume has been light for much of the summer -- and why the S&P 500 ($INX) has been stuck around 1,080 since mid-May.
"Economically, nothing has happened [for months]," Weisberg says. "And the outlook has gotten grimmer." Whether rightly or wrongly so, the market thinks President Obama is anti-business, Weisberg says. He believes investors will mark time until the November elections before committing new money to stocks.
For more on Weisberg's view from the floor of the New York Stock Exchange (NYX), see the video below:
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