LIVE MARKETS-Getting thin for the holidays

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GETTING THIN FOR THE HOLIDAYS

If it's feeling thin out there in terms of volumes, that's because it is. The Fed is expected to deliver a quarter-point cut on Wednesday, but there's very little conviction about what might come after that, given that it could be the most divided decision in recent memory. As such, already thinned-out volumes are even thinner.

Taking a look at e-minis ESc1, December is by far the month in the year with the lowest daily volume, with an average of 1.26 million lots for the entire month over the last five years. In joint-first place, with average daily volume of some 1.7 million lots, are January and October. Average daily volume at this point in December has been around 1.68 million, according to LSEG data, and so far this December, we're looking at an average of just 1.34 million.

A trade is a trade, regardless of volume, but actual conviction and momentum generally require more market depth. With a few major catalysts to go - the Fed, Oracle and Broadcom earnings on Wednesday alone being three big ones - volume may not recover much before January.

(Amanda Cooper)

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