When boring is profitable

By Jani Ziedins | End of Day Analysis

Feb 10

Free After-Hours Analysis: 

There was a little up and a little down, but by the time it was all said and done, the S&P 500 finished Wednesday almost exactly where it started.

This week’s pause is nothing more than cooling off following last week’s long string of up-days. Two-steps forward, one-step back. It doesn’t get any more complicated than that.

Confident owners are stubbornly holding for higher prices and that means every dip bounces within hours. In today’s case, the selling was measured in minutes.

This calm and gentile climb higher cannot last forever and there will be multiple cases of extreme fear and uncertainty this year, but this is not one of those times. Until further notice, this bull market is alive and well and there is only one way to trade this.

No doubt, readers crave deep insights and criticizing the herd is one way pundits make themselves sound sophisticated. But more often than not, successful trading is as simple as going with the flow. There is nothing sophisticated about that. In fact, it’s downright boring and unimaginative. But as long as I’m making money, I’m okay with boring and unimaginative.

No doubt more challenging times are ahead of us. And chances are we will be longing for these boring and easy trades soon enough. But until then, stick with what has been working and that is riding this grind higher.

If this market was fragile, overbought, and on the verge of breaking down, it would have happened by now.

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About the Author

Jani Ziedins (pronounced Ya-nee) is a full-time investor and financial analyst that has successfully traded stocks and options for nearly three decades. He has an undergraduate engineering degree from the Colorado School of Mines and two graduate business degrees from the University of Colorado Denver. His prior professional experience includes engineering at Fortune 500 companies, small business consulting, and managing investment real estate. He is now fortunate enough to trade full-time from home, affording him the luxury of spending extra time with his wife and two children.