Stock Market Gets Its Mojo Back

 | Sep 11, 2017 | 4:33 PM EDT
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The main explanation given for the rally today is that tensions over North Korea have subsided and the hurricane that hit Florida was not as bad as expected. That sounds pretty logical and makes for a convenient headline but the market never sold off on those worries last week. Last week we were talking about how well the market held up despite all the worries.

The market didn't bounce back today because it never sold off in the first place. What is moving this market really has nothing to do with the news headlines. It is the same thing that has been driving for a very long time now which is an intense focus on price action and short term technical conditions. It is totally divorced from the cause and effect relationship that the business media rely upon.

If you want to effectively navigate this market you have to ignore most of the things that the bears keep pointing out. The only thing that matters right now is trying to stay ahead of those dip buyers that never seem to stop. Traders knew if this market had sold off at the open the dip buyers would be on it faster than my two sons are on a hot pizza. The dip buying was such a great certainty that it was never given a chance to start and when it didn't start then there was no choice but to chase things higher.

It may seem simplistic and I know it offends the sensitivities of many intellectual bears but the market has momentum again and you can't fight the trend. It is as simple as that. If you try to complicate to justify a contrarian approach, I wish you good luck.

I am no perma-bull. I am rooting for a correction as it think it will create some great trading opportunities but what I want and what the market is doing are two different things. There is no choice but to maintain a bullish bias right now.

Have a good evening. I'll see you tomorrow.

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