2015 in Miniature

The action the past week is perfectly representative of what all of 2015 has been like for stock investors.

Thursday 5/22 = Rise to new all-time highs

Tuesday 5/26 = -1% drop as investors take profits

Wednesday 5/27 = +1% bounce back up towards the highs

In fact this is becoming the narrowest trading range in recent memory fighting over just 2% the past few weeks. Unfortunately there is no clear end in sight to this range bound activity.

That gets us back to the need for a new catalyst to breakout from the trading range. The question is whether that will be a positive or negative catalyst???

Because we are in a bull market til proven otherwise, then best to place the highest odds on a positive catalyst emerging with new highs as the result. But do not completely short change the possibility that things get worse with more downside as the result.

Solution: Stay long, but stay nimble.

Best,

aka Steve Reitmeister

Executive Vice President, Zacks Investment Research

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