Like Chinese water torture the ultra low range price movement continues — 42 days and counting. Lest readers over emphasize this unusual behavior note that this is by no means the longest occurrence of playing dead. (Less than 1% movement from close to close.) In fact between July and November of ’95 there was a string of 79 days. And in April-July ’14 there was a string of 63 days. The market did not blow up when this period ended but returned to normal volatility. That does not mean that in this present situation normality will reign. As we have constantly averred every market situation is unique and there is no cookie cutter analyzor available. At present we are sitting on it waiting for a signal.
But, if you are getting restless you can look at a present trend in the market — namely the movement into dividend stocks. Our take on the best way to do this is to buy the S&P Dividend Aristocrats — in ETF form, NOBL. A selection from the S&P 500 of its stocks which have the best dividend records:
We would use the August low as a basing point and set the stop 5% down.