This market reminds me of 2006 lately, in that there is such little action intraday. But it also reminds me of pre July 2009 when almost all the gains were in premarket... I find it very strange how we are walked up premarket, and then once again by 10 AM almost any movement on the indexes ceases to happen. Day after day - very similar behavior to what we saw in late spring/early summer. Just random action would have the market falling half a percent or gaining half a percent after the 10 AM mark, but we almost don't budge at all for 4-5 hours at a time as the high frequency trading machines trade amongst each other, collecting rebates, while everyone else seems comatose. Unlike the Siesta Market of late summer [Aug 21, 2009: The Dead in the Middle of the Day Market] we don't even have the post 3:30 PM run up, to provide some action.
If it weren't for the issue that whenever this market seems about to do something bad, a flurry of buying comes in from the heavens, one would think this is a massive distribution (bearish) - a rounded top of sorts. But with intervention in every part of our economy & markets, it's not a market I want to front run or be presumptive about. I will repeat what I've been saying for 2 weeks... the longer the base we build, the larger the ensuing move. And with day 23 in the box (closing prices of S&P 1085-1112) we are pointing to a larger move by the day. Until proven otherwise, based on trend, we have to assume up.... but since this move should be quite dramatic there is no need to guess - it should allow many people on board once it starts.
Until then, it's almost impossible to make any money as so many stocks are simply ping ponging in 1-2% ranges day after day. Hence why transactions have been light of late. Other than making our brokers rich with senseless trades, there is little to do. With our strategy, I don't care which direction we end up going once we get out of the box... just hope something happens sooner than later. Santa Claus surely will deliver us goodies (sacks of US dollars) to take us up soon, no?