Consistency is a good trait in many things, but it can be rather tedious in the stock market. The action today was very similar to what we had yesterday. We started off slightly positive, dipped intraday and rallied into the close. If you use candlestick charts, you will see the same pattern the last four days in a row in the S&P 500.
Not only is the price pattern consistent but volume is light, the trading range narrow and the underlying action generally good. It looks downright boring if you are looking at the indices. Even the big Apple (AAPL) event was a yawn. However, if you caught Airgain (AIRG) or Comstock Resources (CRK) , it was not at all unpleasant. (Apple is part of TheStreet's Action Alerts PLUS portfolio.)
The good news is that we have the policy decision from the European Central Bank tomorrow. It is widely expected that it will continue the dovish tone and the only reason question is how much more dovish can it be.
The bears are still hoping the market is going to stop celebrating the central bankers and focus on how poor the economy is doing, but so far there doesn't seem to be any great desire to fight the Fed or any of the other central bankers around the world.
The desire for a little excitement can easily entice to make big market timing calls, but that just isn't very productive when we have extremely consistent action day after day. Stick with stock picking until it stops working.
Have a good evening. I'll see you tomorrow.