There is an old adage that goes “never short a dull market.” I couldn’t agree with that more and want to stress that it does not say “go all-in and long a dull market.” No, it says, “never short a dull market.” If we have to get down to the core of what that statement says it is clearly telling us that when volume is no where to be found the LAST thing you want to do is go short stocks as you are leaving yourself open to a large short-squeeze as usually happens in low volume markets. But do not think that due it saying that it is never smart to be short a dull markets that it means it is OK to load up on longs and be very long a dull market. It means to, more-or-less, MAKE SURE YOU ARE NOT SHORT but do not worry about being long either. To sum it up it is simply saying “when there is no volume you should have all cash.”