January 24th, 2024

Never short a dull market. The bulls have the exact environment they want to grind higher…low volatility, low volume. As the adage goes, never short a dull market, it is in full effect right now as this tape is just putting its head down and looking for higher.

Today follows the same process I have been mentioning all week, only looking for long setups. The ES remains hugging the top of the daily Bollinger Band as it expands outward, heading towards the target of 4974 and potentially up to 5k.

The NQ is grinding higher, up to its target of 17,777, while the RTY is in catch-up mode.

The only headwind I see for stocks is if the 10 YR (ZN) starts to scream lower and bears some major news, but I don’t see that happening.

My plan is to look for breaks to buy in ES and not even consider shorts. The only way I stop looking for breaks to buy is if ZN screams lower or ES gets back below the 5-day SMA, which is down at 4862.

Small and smart, and no fading rallies in this tape.

Cheers, DELI

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