Both bulls and bears have been awfully squishy in their conviction this summer, and it has by and large been reflected in the charts. As lethargic as the price action had been earlier this week, we are suddenly off to the races higher this morning after the jobs report. The issue now is whether to chase a market that has been so punishing to chasers for many months now. There can certainly be a case made that we are on the cusp of climbing a steep wall of worry, given the amount of non-believers in the bull case. Of course, the cynics have not exactly been run over yet, though we have not broken down in any way since the June 4th low earlier in the summer.
On a summer Friday morning rally, the easy thing to do is complain about all that is wrong with the markets these days, be it the algos or clueless policy makers. However, complaining about things out of your control is only going to distract you from the task at hand as a trader, which is to adapt with the market and manage risk. I am open to the idea of a legitimate move higher, and while that does not mean I am plunging in all-in long here, it does mean I will be quick to adapt if it develops because I have not the summer doldrums and complaints about the mechanics of the market throw me off my game.