What To Do When the Market Is Locked in a Tug-of-War

There’s no shame in sitting in cash and waiting for the market to show its next move before committing to one side or the other. [Jeff Clark's Market Minute]( What To Do When the Market Is Locked in a Tug-of-War By Jeff Clark, editor, Market Minute The stock market usually does whatever it can to frustrate the most investors. So when it seems like everyone is bullish, the market struggles. And when most folks are bearish, the market tends to rally. That’s why it often pays to be a contrarian. Investors who are willing to go against the herd will often do quite well. But right now, the market is not leaning much in either direction. There’s just about as many bulls as there are bears. So, the most frustrating action the market can do… is nothing. And that’s exactly what we’re seeing. Recommended Link [Brad Thomas’s Intelligent Income Investor]( [image]( Brad Thomas’s Intelligent Income Investor service is geared toward helping you collect the safest dividend income in the market. It all starts with Brad’s “SWAN” portfolio, of the 10 best companies to own through any market. [Click here now and learn how to join.]( -- Look at this long-term monthly chart of the S&P 500… [(Click here to expand image)]( The S&P 500 is sitting right on its 20-month exponential moving average (EMA – blue line). That’s the defining line between a long-term bull or bear market. If the index is above the line, then the trend is bullish. If the S&P 500 is below the line, then the bear is in control. Conditions turned bearish in early 2022. But for the past few months, the bulls and bears have been locked in a tug of war. The 20-month EMA has been a magnet for the S&P 500. And as a result, everyone is getting frustrated. Traders who have been aggressively bearish have struggled as the market refused to break lower. And folks who are wildly bullish are frustrated by the lack of upside momentum. In other words, the market is doing exactly what it does best. It’s frustrating the most participants as possible. Neither bulls nor bears are happy in this environment. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. Fortunately, this is one of those times where traders can actually get paid well to just sit on the sidelines. Many money market funds are paying between 3.5% and 4%. So, idle cash actually earns something for the first time in many years. Of course, that’s not the best setup for traders. We’d much rather be in the middle of the action – betting on a big move higher or lower. [$19 Makes Your Trading Bulletproof? (From The Man Who Doubled His Money 12 Times in 2022)]( But when the market is as stingy as it has been lately – not willing to reward the bulls or the bears – and when the longer-term trend of the market is indecisive, the best option is to sit on the sidelines. There’s no shame in sitting in cash and waiting for the market to show its next move before committing to one side or the other. And with the S&P 500 finishing February right on its 20-month EMA, it sure feels like cash is a good position right now. Best regards and good trading, [signature] Jeff Clark Reader Mailbag When do you think the market will make its next definitive move? Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com. In Case You Missed It… [Market Wizard’s #1 Strategy for 2023 – Get Access Now]( In this video, Market Wizard Larry Benedict reveals how to make all the money you need… In any market… Using a single stock. And he’s giving you access to the top strategy that could put 2023 on the right track. [Click here to watch the video.]( [image]( Get Instant Access Click to read these free reports and automatically sign up for daily research. [The Ultimate Guide to Taking Back Your Privacy]( [THE 101 GUIDE TO PRE-IPO INVESTING]( [An Insider's Guide to Making a Fortune from Small Tech Stocks]( [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-752-0820, Mon–Fri, 9am–7pm ET, or email us [here](mailto:contactus@jeffclarktrader.com). © 2023 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](