Market players were in a grim mood overnight into Thursday. The indices had reversed sharply and closed poorly after a very dovish Fed interest rate decision.
It was the worst response to the Fed in a long time and had the bears anticipating more selling pressure as their negative narrative about slowing growth and impotent central bankers took hold.
However, as has been the case quite often in 2019, the bears could not close the deal. The indices moved straight up Thursday following the gap-down open and stayed strong all day. Breadth was around two to one positive and new 12-month highs were close to 400. The only notable weakness was in banks but that was more than offset but a huge move in Apple (AAPL) , semiconductors and a variety of other sectors.
For much of the last ten years one very trite saying has provided the best advice for dealing with the market: "Don't fight the Fed."
Yes, it is simplistic but it sums up the market action better than anything else. Despite this fact there are legions of market players and pundits that are anxious to point out how the Fed is on an unsustainable path that will lead to disaster. They have been wrong for years and they are still wrong.
The best advice I can give right now is to repeat what I've been saying for a while. Stay focused on your individual stocks and stay with them as long as they are working. Don't embrace the macro arguments until there is some negative price action to back it up.
Nothing is easier than to formulate an argument why the market can't keep going up. The hard thing to do is to stay with it but that is the right thing to do.
Have a good evening. I'll see you Friday.
Will You Have Enough Money to Retire?
Want to learn about retirement planning from some of the nation's top experts? Join TheStreet's Robert "Mr. Retirement" Powell live in New York on April 6 for our Retirement Strategies Symposium. For a limited time, tickets are available for $99 for this full-day event. Check out the agenda, learn about the speakers and sign up here.