The indices have been up, down, up, down over the past four days and that is causing consternation for market players that have a strong directional bias. This is trading range action and that requires an agnostic attitude and flexibility. If you are a dogmatic bear or bull you will miss out on the opportunities this sort of action creates.
The indices are now well off the lows that occurred following the news that the North Korea summit has been canceled. News events like this just never seem to produce the sort of downside momentum that the bears keep anticipating.
Since the day Donald Trump was elected there has been a sleuth of bears convinced that he would create a cascading market selloff that would finally push the indices into a long-awaited correction. Instead what happens is that the initial spike down draws in dip buyers and when the bounce holds, then more buyers step up.
We've seen it with Korea previously, the Gary Cohn resignation, tariffs and a variety of other things. It has paid to buy any Trump generated dip in the market and it is happening again right now.
I've had some good success with China names like iQIYI (IQ) , Bilibili (BILI) and HUYA (HUYA) lately and am looking for similar plays. My cash levels are quite high because there has not been that many trending stocks and I'm trading more aggressively. That is how I control risk in a trading range market.
The key right now is to keep looking for those trading opportunities and don't' let the big picture bulls and bears distract you.