Despite the inflation data and some issues with earnings, it’s a pretty flat day in the market. We’ll see if there is any excitement later, but looks like it will just be a nothing day. Over the summer I used to reference “DMZs” (Demilitarized Zones) where the market would remain stuck for lengthy periods of time. When the market is stuck in one of these DMZs as I referred them, there really was no trade to make. We are currently in a DMZ right now of 4380 to 4320. It’s a little bigger than those in the summer, but until 4380 breaks or 4320 cracks, there is really no trade…for me at least.
I hate to quote Jim Cramer, but this morning he commented that one day a stock is hot, the next day it is not and nothing goes anywhere. It’s really the case right now. No reason to force any new trades, just riding the existing trades until something cracks. We’ll see where today ends and if it provides any hits for the next move.
Good luck in your trades!