The stock market has hit the Pause button.
After a one month post Brexit explosion, the U.S. stock market has decided to take a quick breather. And why shouldn’t it? It’s earned a rest.
There is still no indication this remarkable but aging seven year bull is ready to be put out to pasture just yet. Typical bull markets end in a state of euphoria, with a rip your face off finale when your Uber driver is giving you stock tips and your hairdresser is glued to CNBC. That will be your signal to cash in your chips and hit the nearest exit of the stock market casino.
So what to do during this pause? We suggest you use this break to trim your weak hands from your portfolio and raise some cash that you can put to good use when the market gets back from the kitchen.
We believe as long as the S&P 500 stays above the 2,131 level this pause is just a regular T.V. timeout, and once the market is back in the Barcalounger we expect higher prices into the end of the year, possibly much higher. On the other hand, a close below 2,131 at any time in September, which historically has been a sometimes volatile month, and we will quickly reevaluate. So either way, don’t get caught napping and miss the next major move that is just a couple more commercials away.
Remember it’s the Pause button gang, not the Snooze.