Random Thoughts: Stock Market Update
It’s Friday afternoon and the Ps (S&P 500) are tanking. It’s not the end of the world but it does add a little credence to what I’ve been saying to the bulls-show me! If this is the mother-of-all new bull markets then it should at least be able to make it to new highs. As I’ve been saying ad nauseam, the indices, especially the Rusty (IWM) and Quack (Nasdaq) have a mountain of overhead resistance to overcome. The market weakness is keeping the indices where they were weeks, months, and even years ago on a net net basis. Again, show me!
Don’t get me wrong, I’m not Raging Bear, I’m just being prudent, picking my spots VERY carefully. On many days, there’s nothing new to do. The database also hasn’t produced any meaningful shorts in a while so only longs remain in the portfolio. I’m going to let it all unfold. If I can’t walk away and be okay on a setup, then I’ll take it. Otherwise, I’m hanging loose full of juice.
There’s not much to report in the sectors. I still like the Commodities-Energies and Metals & Mining but that’s been a bumpy ride-usually is. The good news is that they seem to have 9 live so far, today notwithstanding. Most of the rest of the sectors have taken on an appearance like the market overall: either sideways are stalling near old highs.
So What Do We Do?
Well, not much: Again, pick your spots carefully. For the most part, let everyone else fight it out. Take things one day at a time and one setup at a time. It’s okay to mostly wait for things to improve. Keep the aforementioned net net thing in mind. And, remember, trading is the one business where doing nothing is sometimes okay. If you do decide to take action, just make sure you have a solid money & position management plan in place. You do have a money & position management plan, right?
May the trend be with you!