So far the market has lived up to expectations: indecisive. I noted when the market staged a follow-through as called by the Investor’s Business Daily that there were mixed signals. True to form, so far in the 3-day old rally, we don’t very well know if we are going up or down.
You can just see it on the chart I’ve posted here. Note Monday’s action is the beginning of the rally. See how the market has behaved the past two days. On the day after the rally began, Tuesday, the market went higher, then faded and closed near session lows. This wasn’t ideal. Then on Wednesday, the market moved higher again, only to end at the bottom of its range, actually down a tick on the NASDAQ.
This kind of action is clear hesitation, which is clearly nothing. That’s just the way you have to look at it. No real reason to commit a lot of capital right now, but no reason to be scared that the market will tank. It’s just indecisive. Therefore, stay focused and let the market indicate which way it will start going and act accordingly. I still have my test option in GMCR until I see more reason to ad to the position or liquidate.
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