Thursday, June 23, 2005
Major indices continue to remain above their 20-day averages and we are not seeing any bearish divergences showing up on major indicators warning us that the market rally is done yet. At the same time, stocks have been stuck this week lulling traders to sleep. Weeks like this make it hard to make money in the market. Trading can be one of the most exciting and challenging careers one can embark on but at times it can also be most boring and mind numbing. Fortunately the market has a history of moving from phases of inactivity to bursts of activity. This time will be no different. Without warning the market will make a move and the move is likely to be a strong one. There is of course no guarantee which direction the move will take, but for now we lean towards an upside move for the reasons stated above.