The market action is not only amazingly persistent but surprisingly consistent. Once again we have the same pattern of intraday action. We start off with a minor move, then there is an early dip that causes the bears to think that finally a pullback will occur, but the weakness is quickly bought and the indices are back to intraday highs very quickly. The indices go from the lows to the highs in the blink of an eye. After the recovery, the action slows down and then there is another push higher into the close.
This pattern of action has been going on since Sept. 11, 2017. There have been a couple of minor exceptions but during that timeframe the S&P 500 ETF (SPY) has closed near the highs of the day roughly 21 out of 28 days.
The bulls seem to always find another good reason for upside. Today it has been mainly about IBM (IBM) and the DJIA, but one day it will be the small-caps that lead and the next day it will be the FAANG names and the Nasdaq-100 ETF (QQQ) that push things higher.
Many bulls are loving the uptrend, but it is hard to find anyone who isn't hoping for some sort of pullback. The bears for obvious reasons, but the bulls because they want to catch their breath, let things reset and find some better entry points. Buying stocks that are making new highs every day just isn't a trading approach that holds high appeal when everything is tremendously extended.
It's a mix of action I have never seen. A relentless uptrend but with no excitement, volatility or volume. The irony is that the conditions are in place for this pattern to continue. The fact that it isn't widely embraced or celebrated makes it more likely to continue as those folks fighting it slowly capitulate.
I continue to hunt for some new buys, but I'm not expecting to find much until this amazingly consistent market undergoes a change.