One Picture That Summarizes the Last Two Weeks

Since the S&P topped out above 1370 Last Monday morning the markets have been in an approximate 30 S&P point trading range with a much tighter 18 point range seeing the bulk of the action. Hidden beneath the action of the major indices there has been a major rotation out of the commodity/emerging market plays into safer, larger cap, more defensive names such as $CLX, $INTC, $PG, $XLV etc.

 

 

The above chart of $SPY is a sloppy mess but make no mistake, even a market such as the one above is full of opportunity. The name of the game recently has been to buy weakness and sell strength.

My primary short term thesis has been that the market will remain in a trading range (S&P 1330-1360) for a few weeks until the next major catalyst arises. What will the catalyst be and when will it occur? Only Mr. Market knows.

 

Addendum: I am almost finished with a killer new post which I will put the finishing touches on Sunday after a CFA Level II practice exam tomorrow.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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