The Nasdaq inched higher for the eighth straight day. Breadth was solid with 4,400 gainers to 2,800 decliners, small-caps outperformed again and there were pockets of strong action in individual stocks. The only problem with the action is that the indices have been close to flat and the bears keep telling us we are on the brink of disaster.
It was a slow day for the indices but there was a brief flurry of action on the release of the Fed FOMC minutes (read Tom Graff's analysis here). Probably the most noteworthy comment in the minutes was that, "Almost all participants thought that it would be desirable to announce before too long a plan to stop reducing the Federal Reserve's asset holdings later this year."
The Fed really can't be any more dovish than it already is without cutting rates. Many market players think that they are setting the stage for some cuts with comments about how the economy is showing signs of weakness.
The market bounced around on the Fed minutes, but it is still the China trade issue that is keeping a bid under the action. Market players simply can't risk being aggressively short when there could be some news on the progress of negotiations at any time. The inclination of the Trump Administration is toward a positive spin and even if many market players are skeptical, it still leads to positive reactions.
While the indices are lackluster, the stock-picking and trading are good and that should be the primary focus.
Have a good evening. I'll see you tomorrow.