You would think with all of the negativity thrown at the market that it would be caving in by now; but it isn’t. Instead it is going through a healthy rotation, correcting some excesses along the way, while maintaining an average level close to its highs. New money comes in to buy the correcting sectors, while currently invested funds chase new opportunities or perceived value.

The result is that this market refuses to breakdown and give us a correction.

One might ask are most investors ebullient, bubbly, and over optimistic or are they cautious, concerned, and timid. It seems that the latter is a better description of the current environment. This is a positive because it keeps money coming in slowly rather than all at once. This steady flow prolongs the trend.

Soon investors will have second quarter earnings to review. We believe that they will show that economic activity is healthy and earnings growth on track.

Stay steady, my friends.

the Lonely Bull