We started off this week with a little volatility caused by the GS fraud charges and some short-lived sell-the-news pressure, but it didn't last for long. By the end of the week, were right back to slow but extremely consistent move higher. Anyone who tried to anticipate a turning point just ended up as short-squeeze fuel.
What is so amazing about this market is how unchanging the action has been for so long. It has been a steady trek upward, and any hesitation at all has been a buying opportunity. The dips have been so shallow and so infrequent that many of the dip-buyers have turned into chasers because they are so tired of not being able to put money to work.
Although I'd like to offer some dramatic new advice about this market, there really is nothing else to do but to respect the power of this trend. The momentum is crushing any and all opposing viewpoints. If you have a bearish argument, it is wrong, no matter how eloquent, insightful or penetrating it might be.
There is a great temptation to keep on looking for a turning point, but if you are dwelling on that, then you are missing out. That doesn't make it any easier to keep on riding this runaway market, but until conditions change, there aren't any good alternatives.
We have a deluge of earnings reports next week to add more drama, but it sure would make for a more interesting battle if we had bears shake things up a bit.