The tight multi-week trading range of SPY along with ever decreasing volatility has got some folks saying that this is the most boring market ever. Well since our General Investment Strategy (GI) went to buy mode on 1/17, SPY has uneventfully gained 2 and a half points. And before that on 1/5 we sold our calls from late December for a gain of 23%, unexcitedly kicking off 2017 with a YTD return of close to 2%. If this is what happens when markets get boring, we’ll gladly take more of that please. Low volatility and sideways movement are also the hallmarks of consolidation, which for the bulls is hardly something to complain about, and since January 1st we still have only logged one across-the-board distribution day. Tuesday’s heat on HG gave the bears something to shout about, however (distribution on the big board), and now TVO has shifted towards negative values. Of course something really exciting could always come and turn things around (like Valentine’s Day sometimes does for that special someone), but the special Valentine’s Day Fed testimony may not come soon enough to fit the bill. -MD
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