A mixed start to the second to last full week of summer. We are still trading in a relatively tight range despite a little nonsense intraday. Volume was light on the session. Crude oil fell more than 3%. Pundits blamed Iraqi oil supply hitting the market. Subsequently, energy names fell the most. Utilities took the lead today, but they only inched higher. XLU still remains below its 50 day. This market is doing a decent job working off overbought conditions. The longer we remain in this tight range the odds improve this rally can extend into the year-end. Despite the tight range and lack of volatility there is no reason to bail on this uptrend just yet. Stick with the trend.
We are in a historical bad time of year for stocks. Seasonality is NOT in our favor yet this market continues to act in a positive manner. The S&P 500 is in unprecedented territory given its tight trading range over the last 14 days. Most would jump to the negative conclusion this market is going to crater over the next few weeks. Given where we are seasonality wise it would not be a surprise to see the market correct. We continue to see people come up with analysis as to why the market will fall rather than why it will continue to push higher. The trend remains and we are not going to argue with it.
There are still plenty of opportunities in this market. It boils down to whether or not you chose to want to get on board. We continue to find opportunities and we take advantage of them. You miss 100% of the shots you don’t take.
Not a great way to start the week, but not a terrible way either.
