This week Q2 report from company's in the US underlined how much money was sitting on the sidelines .

From memory at least 6 companies reported having over $17 billion in " cash " meaning in short term US bonds .

The new bill regarding financial institutions is expected to be signed by the president on wednesday , once it's done Financial institutions will then have a better idea of the latitude they have and the loopholes they can use to invest some of that cash in the market .

Then the economy outlook as well as market conditions will dictate how much of that cash sitting on the sidelines will make it's way back on the market over the next few months .

Retail investors sitting on the sidelines will follow that lead after a while . If the economy looks to improve ever slightly we should see volume and prices improve in riskier stocks .

There seems to be a lot of good deals among penny stocks but that's realy because there's so little money into them wich allows PP to be made at what seems sometimes to be ridiculously low prices .

The focus on double dip recession does'nt help either . I believe once money starts flowing out of bonds and into the market this will act as a stimulus package coming from the private sector , with the exception that it won't be borrowed or printed money .

Let's hope that by the end of the summer when most money managers are back from their holidayes money will be flocking back into the stock market .