My old drama coach used to say, 'Don't just do something, stand there.' --Clint Eastwood
Early indications are for another slightly positive open. Since the year began, we have had few large gaps to start the day, but buyers eventually become more active and we end up with a good day. It has been so consistent for so long there really isn't much new to say. There's no reason to expect the pattern of slow-but-positive action to end soon.
The great temptation is to keep trying to predict some sort of drama. Why not stir things up and make predictions about how something major is about to occur? It is a good way to gain a little attention and it is more interesting than this dull action. Unfortunately, making flamboyant predictions is not a good way to make money. The best way to deal with this market is to stand there and continue to do the same thing over and over.
From a writer's standpoint, I have to fight my hope that the market will do something soon to shake things up. There isn't a whole lot new to be said about this slow-trending action. Hopefully, I've made it clear that the best approach is not to be anticipatory and to stick with the trend. That has been the way to approach this market and, until the character of the price action shifts, that is what we must continue to do.
In a market like this, most market pundits have little choice but to keep trying to predict when this action will end. After all, the job of pundits is to make predictions and to provide interesting insights about the market. It isn't very interesting to suggest we keep doing the same thing over and over and not worry about when it might fail.
We know that this action will eventually shift and the market will act differently; however, there is really no reason to worry about that right now. Our focus shouldn't be on prediction but on how to extract as much as we can from this market. The only way to make money is to stick with the trend and not be sucked into this top-calling game.
The market is trending upward and there is no reason to believe a top is about to occur. That is about all we need to know.
