The dog days of summer hit the market with volume dropping to the lowest levels since early July. Early morning lows were met with buyers, but for the S&P 500 and the Dow couldn't muster gains. Over at the NASDAQ and Russell 2000 were able to grab gains. Not much in the way of economic data to get the market to dive one way or another. Our uptrend remains despite the number of distribution on the NASDAQ and the S&P 500. While it is easy to make excuses and say we should be cautious, but there isn't a way to know whether or not we have topped. We will continue to push forward and use price as our guide.
Market leaders continue to act well in this market environment. It is nice to see market leaders continue to hold up well despite the number of distribution days we see. Sure, next month we'll see a confluence of events that may or may not trip up this market. However, we aren't there yet and guessing how the market will react to any kind of event is a fools' game. We have price and what we know at this point in time is this market does not want to go down. If we do see major cracks in market leaders and further major distribution we'll change our tune. Until then we'll continue to push forward.
There are plenty of people writing and bloviating about what will happen with the Fed through the end of this year. Will Big Ben taper or not? Is the next Fed chairman Yellen or Summers? We can debate how Fed policy has completely destroyed the cost of savings devastating those living off interest including pension funds. However, this is simply policy debate and should not be mixed with trading the markets. It doesn't matter to use if the Fed will taper or if the next Fed chairman is Yellen or Summers. We'll stick with price and leave the rest of the nonsense to others.
Cut those losses short and ride your winners!
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.