The bulls aren’t satisfied; the bears aren’t either. Stocks, that look like they are about to breakout, break down. Those in serious downtrends suddenly reverse, finding support and attracting bargain hunters. This is all symptomatic of a market caught in a trading range. We’ve been prognosticating this type of trading for some time. It’s just no fun to be stuck in one.

How long can this last?

Considering that markets have been producing exceptional returns for years, it should not be too surprising spending time digesting these moves.

At some point, an important catalyst will come along that changes this back and forth pattern. It’s totally unpredictable when that may occur. With business fundamentals so good, the best prediction is that change will be positive.

In the meantime, we are making some progress by identifying exceptional investment opportunities. Stay steady, my friends.

El Solo Toro