This is quickly turning into a do-nothing week for the S&P 500 with 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.
FB and 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 high to keep getting even higher.
And if the FAANG stocks get their mojo back, expect them to lead the entire market higher.
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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.