It was a positive day with the same old result. Despite some very favorable acquisitions and good breadth the bulls just couldn't generate enough momentum to make much of a difference. The indices continue to be stuck in a very annoying trading range.
According to Ryan Detrick, senior market strategist at LPL Financial, this is the 49th day in a row that the S&P 500 hasn't closed at a new high, but what is highly unusually is that it has also closed within 3% of an all-time high on all 49 days. So, the S&P 500 isn't breaking out but it isn't breaking down either.
Another example of this trading-range action provided by Detrick is that the Dow Jones Industrial Average will close under its 50-day simple moving average and above its 200-day moving average for the 32nd consecutive day. The record is 33 straight days and was set 41 years ago.
There are many statistics like this right now that confirm what anyone already knows: this market is trading as flat as a pancake. It is tough enough for stock pickers, but if you are a market timer that isn't a day trader this market hasn't offered much for months.
While the stock picking was better a month or so ago, there are still some decent opportunities. For example, I mentioned Acacia Communications (ACIA) and Momo (MOMO) today, which both did well. Action Alerts PLUS holding Facebook (FB) acted like a stock of the week is supposed to act.
I'd like to say something new about this market but the fact is there hasn't been any change in the action. The news flow has been generally good although it doesn't create enough buying to produce a decent trend. One of these days we are going to see a big move out of this trading range but there's no telling when that might occur.
Have a good evening. I'll see you tomorrow