After three days of minor losses for the Dow Jones and the S&P 500, the indexes turned back up on a slow, sleepy Friday. The action was lethargic, but breadth was solid with 4,600 gainers to 2,700 losers.
What is most notable about the market isn't the buying, but the lack of selling. The bears had negative China trade news this week and a market that looks like it is on the brink of some corrective action. Yet they can only manage very minor downside. There just isn't any fear or worry that is pushing market players to hit the eject button.
News that "phase one" of a China trade deal may not even be completed this year barely caused a ripple. The impeachment circus in Washington has been completely ignored and concerns about a slowing economy have totally evaporated. The bear's primary argument for a pullback seems to be "we are due."
It is easy to come up with reasons why this market can't continue to run up, but the smart move is to not fight the trend. There is substantial fear or missing out, a flood of cheap cash from the Fed, and a wall of worry to climb that seems to be driving this market.
Next week is Thanksgiving, and that tends to have a positive bias. The positive mood of the holiday, coupled with traders looking for some speculative movement on thinner volume, often creates some interesting pockets of action.
Market players are always looking for the current pattern of market action to shift. The problem is that they do it prematurely and then miss out when the trend continues. We have a great example of that right now. I have no idea how much longer it will last and I'm sure to be long when the top does come, but it just doesn't pay to forego the opportunities that this market is still offering on the long side.
Have a great weekend, I'll see you on Monday.