After five straight down days last week, the S&P 500 managed four out of five positive days this week.
There wasn't any big news event to account for the shift. Market players simply decided that economic growth worries just didn't matter, Brexit is irrelevant and maybe that U.S.-China trade thing could eventually work out OK.
This is a good example of trading range action, with the media hunting for daily explanations for the rather random movement. It can be difficult, if you are using a macro approach, to try to determine where the market is heading but as I discussed numerous times this week it makes for some very good trading of individual stocks, if you stay focused.
We wrapped up the week with some choppy trading mainly due to option expiry but under the surface breadth was buoyant again with around 4,350 gainers to 2,880 losers. There were more than 300 names hitting new 12-month highs and many pockets of strong momentum. FAANG names and Apple (AAPL) in particular, did most of the heavy lifting for the indices.
The conditions for next week are much the same as they have been the last two. The indices are extended into resistance, this bounce is growing long in the tooth and we have almost recouped the 2018 fourth-quarter losses. The bears are still yapping about slowing economic growth and this "fake" China trade deal but most of the bulls are too stupid to realize that they should be worried about the future rather than making money today.
I continue to like the technical setups I see in individual stocks and until that changes I'm going to stay with the long side. Yes, there are plenty of good arguments against this market but they aren't working and I'm too dumb to worry.
Have a great weekend. I'll see you on Monday.