Good morning everyone. The overall market continues to tighten its price range and seems to be locked into a choppy go nowhere pattern. We don’t have any economic news to speak of today that could provide a spark of directional energy but we do have 2 Fed speakers wasting oxygen.
We are beginning to see a barrage of talking heads predicting the market has nothing up upside with an equal number of those saying we are close to a cliff. The fact of the matter is these talking heads are on their knees pleading a case to please put your money in the market because they are bleeding to death this year. A report last night showed that only 16% of money makers are beating the market so far this year. Outflows from mutual funds continue to grow and even hedge funds are parking money in ETF’s just hoping to at least match the market.
Trust me on this the market will eventually pick a direction and it will have nothing to do with any of these talking heads and their predictions. Just follow the charts, my friends.
As this range continues to tighten the danger of a big move grows. The very best position today is to keep your hands in your pockets and away from your keyboard. Wait, watch and be ready when a direction shows itself.
Trade Wisely,
Doug
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