Bulls Get to Have it Both Ways

 | Jun 02, 2017 | 4:11 PM EDT
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The bears have been trying to call a top in this market for quite a while but they keep overlooking one very important issue -- this market doesn't care about headline news. The bears keep hoping that Donald Trump, the Fed, economic news and a variety of other things will be the catalyst that causes this market to roll over but it just doesn't happen.

We had a particularly good example the last couple days as the market rallied strongly on Thursday on better than expected jobs news but then rallied again when additional jobs news turned out to be quite poor. The bulls are having it both ways and it is causing great frustration for many bears that are convinced that the facts, that are so clear to them, are going to matter.

What is going on here is that market players are focused on price action. They see that every pullback is quickly bought and that bad news is ignored so they join the party and make those inclinations even more self-fulfilling. If the market doesn't care about news we need to acknowledge and accept that fact if we want to effectively navigate this market.

There is no question that this dynamic will shift at some point and there will be a news event that does matter and will be a catalyst for a market turn but trying to guess what and when that might be is futile. There isn't any way to logically time this market at the moment. We simply have to wait for the price action to shift and then react. That may not be a very appealing approach to the intellectuals that think they can apply logic to this market but reacting is working much better than anticipating.

Have a great weekend and do something fun. I'll see you on Monday.



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