This is quickly turning into a do-nothing week for theS&P 500with each day amounting to little more than a tenth of a percent swing in either direction.
As anti-climatic as this benign trade feels, stability is not a bad thing. Remember, boring markets are bullish markets. Free from outside pressures, almost all stock owners would prefer holding for higher prices and that is exactly what they are doing here.
While this feels like watching paint dry, it could be worse. And in fact, it will get worse soon enough. Enjoy these easy days while they last because increased volatility is just around the corner. We don’t know what will cause the next drop or when it will happen, but it always comes eventually, often when we least expect it.
Until then, a market that refuses to go down will eventually go up. While the going is slow, as long as we keep getting more up than down, everything is going according to plan.
Don’t fight what is working. Keep holding for higher prices as long as the market remains above our stops.
Facebook(NASDAQ:FB) andAlphabet (NASDAQ:GOOGL) are riding the wave of aggressive ad buying higher. As bad as this economy looked 12 months ago, businesses are confident and in fact, the biggest problem most them have is making enough product to satisfy demand. These industry-leading ad platforms are near all-time highs and expect highs to keep getting even higher.
And if theFAANGstocks get their mojo back, expect them to lead the entire market higher.
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