Well, we got what we wanted to see a boring day consolidating recent gains. Volume was much lower across the day another good sign for this uptrend. Even disappointing ADP and ISM figures pushed the market lower. The cold weather the US has been experiencing apparently has slowed down the economy. However, history tells us demand simply gets backlogged and will hit the market in the spring time. Friday we will get another jobs report and it will be the last report prior to the next Federal Reserve meeting. We certainly are happy to see this market take a rest and with the jobs figure out Friday it may be a catalyst to continue to move this market higher. Stick with the market trend.
One more positive on the day was the fact the Federal Reserve released its Beige Book and while it highlighted the weather has lowered economic output. The market did not move lower and panic over weakier economic activity. Price continues to hold strong and that is a good sign for this uptrend to continue moving higher. Remember, the Federal Reserve is going to continue to provide this market with free money until October. Perhaps the market will sniff out the end of quantatitive easing and correct. It is anyone’s guess when and how big the correction will be even if we get one. At this point it is silly to try and guess. The path of least resistance is riding the prevailing trend.
Even if we move higher tomorrow it won’t be the end of the world. Of course it would be nice for us to consolidate one more day in the very least in order to get more gains from this uptrend. Many will continue to try and pick “The Top” looking to be the next guru. We are not interested in becoming a guru who will be paraded on CNBC as the people who called the top. It is useless and it doesn’t serve anyone but our ego. It is much better to extract the maximum amount from the current uptrend and when we turn lower we have a process to identify. Stick with the plan.
