It is sometimes difficult to do nothing, but that is what is called for until the market reveals its next short-term direction
New York, Mar.4, stock watch .- On Friday, the Dow rose to within 75 points of its all-time closing high after reversing from an opening loss of more than 100 points. The lower opening resulted from weaker-than-expected economic reports from China and Great Britain. But later in the day, a report indicating that the U.S. factory sector expanded more than expected trumped the China report, and stocks turned up. Also, the University of Michigan’s consumer sentiment index scored its highest level since November, and that was a pleasant surprise.
And so, after the best start in many years, the broad-based S&P 500 is plodding along more slowly, and the stocks that usually draw attention at the cusp of a breakout (small caps and midcaps) are being ignored. It is sometimes more difficult to do nothing, but that is what is called for until the market reveals its next short-term direction. ...