The most notable thing about the market this week was that none of the major indices moved even 1%. It was one of the deadest weeks of action that I can recall, and it was downright exhausting. What made it even more difficult was that plenty of stocks continued to drift upward and we had a big supply of new highs, but it was lacking in energy and random at times. There were no big pullbacks, but there wasn't any momentum either.
The bears will tell us that this flat action is an indication of greater uncertainty and a sign that the market is going to start rolling over. The bulls say that this is just very healthy consolidation after a good run and is a great foundation for further upside.
I'm not sure who is correct but I'll take a big move of any sort at this point. What we need more than anything is stronger emotions and greater volatility. I believe the lack of passion is more dangerous than anything for traders. We need good old-fashioned fear and greed to move things around. The opposite of love isn't hate but disinterest and that is what we have in this market.
Unfortunately, the market doesn't much care what any of us might prefer. We have been given a very slow market and we have to find a way to deal with that until conditions change. The key is to accept what is and not waste time or energy focusing on what you would prefer happening. The good news is that the one great certainty about the market is that things will eventual change.
Have a great long weekend. I'll see you on Tuesday.
