The action today was a particularly good example of the old saying that warns against shorting a dull market. We had the lightest volume of the year by far, breadth was negative and there definitely wasn't much excitement, but we held up extremely well and there was plenty of green on the screens.
It is not hard to find negatives, but they just don't matter. We keep chugging along and ignore all arguments in support of why we should pullback. I suspect that so many market players are confident we are going to pullback, which is the very reason that we continue to keep running.
The easy thing to do is to keep predicting a top is going to occur at any moment. Many market commentators have been doing that for weeks. They were right for one day, but this market continues to reward those who simply stick with the trend and don't look too hard for reasons to sell.
The best way to deal with this market is to stick with it and not be overly anticipatory. Eventually, we will see a change in market character and we'll have to make adjustments. The bigger mistake is doing that too soon. As long as you manage positions closely and are ready to react, there isn't much to do but stick with the trend and not worry too much about the health of this market.
Have a good evening. I'll see you tomorrow.
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