Has the market lost its mojo?

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Has the market lost its bid? Sure seems that way, but be careful. Volume is painfully low, and there is very little monetary or emotional involvement in this market.

There is a name for this phenomenon: August. Careful about making bold calls based on this.

With that said, two things are clear. First, the markets can't figure out what the "right" interest rate should be, so passing technical levels becomes very important (we are near the highest yields of the year on the 10-year Treasury yield). Second, it may look like the market has lost its bid, but money may just be going elsewhere, particularly to Europe and emerging markets.

Look at global markets in August:
Brazil: 6.1%
China: 5.3%
Mexico: 4.0%
Germany: 1.9%
U.S.: Flat

In Europe, you are getting a little cash flowing back in as the risk of further GDP drops there fade a bit and the threat of a euro currency collapse is distant (for now).

China economic strength is also sucking in commodity stocks that have been terrible performers this year.

Commodity exchange-traded funds (ETFs) in August:
Steel stocks (SLX): 8.0%
Coal stocks (KOL): 7.9%
Copper stocks (COPX): 9.6%

By CNBC's Bob Pisani

  • Bob Pisani

    A CNBC reporter since 1990, Bob Pisani covers Wall Street from the floor of the New York Stock Exchange.