Of course, we need to play the hand that is dealt and that means embracing this action even if we don't understand it or feel very confident about it. The price action is always the final arbiter and it is undeniably strong. Either hold your nose and stay bullish or stay on the sidelines and underperform.
I'd love to make a dramatic market call and predict that a major change in the action is about to occur. It would be nice to have a shakeup and a little drama, but it seems the more we look for it the more the market continues to drift higher as if there isn't a worry in the world.
April 29, 2013 | 10:41 AM EDT
The 'V' Goes On
The fear of being left behind is as strong as ever.
The S&P 500 is up for the sixth of the past seven trading days as the V-shaped bounce continues. The recent action has been a classic example of how this market behaves since the central bankers have gone to work. There has been very little positive economic news lately, although the housing numbers were good this morning, and earnings have been mixed, but there is an unrelenting bid under the market and there is a constant hunt for long exposure.
If you have tried to navigate this market based on news flow, you have been totally out of step and, even worse, if you have focused on the charts you have been misled to some degree. All that has mattered is the idea that the central bankers are in control.
The lesson of the story is to stay with the trend and don't fight the Fed and its buddies.
I continue to struggle putting money to work and it definitely is not getting easier. The solar stocks I've been discussing lately,
, are still chugging along and the biotechnology group remains strong.
Probably the most notable action is strength in
and some of the big cap technology stocks. That is probably a function of money managers going to the liquid names to put cash to work. Gold continues its very strong bounce and the only major sector showing red is retail.
Fear of being left behind is as strong as ever.