Stocks have shown some resiliency this week as they have made an attempt to recover from last week’s weakness, which was primarily due to the imminent threat of a US strike on Syria. Also, the senior portfolio managers are returning to the fold after taking some time off in late August, and they are likely seeing more opportunities than threats at the moment.

Stock market bears needed a new weapon to fight off bold bulls, and they found it in the same place that WMD’s often emerge -- in the Middle East, this time in Syria. In this case, however, I’m not talking about a weapon of mass destruction, but rather a weapon of market destruction.

Anxious bulls no doubt are looking for ways to rustle awake this sleepy late-summer stock market, before the bears stealthily bring it down. Investors’ focus has been on the Fed and what it might do next month, and Wednesday’s release of the July FOMC meeting minutes showed almost all the voting members supported no change in stimulus, with only a few hawks insisting that tapering should begin sooner.

Bond yields have crept back up to near multi-year highs as the bond market appears to be anticipating some measure of tapering in the Fed’s monthly bond-buying program. This undoubtedly has caused some hesitancy among stock investors, too. And then there are the looming debt ceiling and budget battles, as well as concern about slowing corporate earnings growth. And let’s not forget the comparisons to 1987 we are hearing, with Marc Faber (a.k.a., “Dr.

• Stock investors are surveying the view from these lofty heights, with the S&P 500 trying to hold up just below the 1700 level, and they appear to be feeling some vertigo. They are wondering if there will be a catalyst to take stocks higher before Labor Day, or if the dreaded correction is imminent. However, my concern is that investors might be hamstrung by a perceived no-win situation.

Overall, earnings reports have continued to beat the low bar of expectations.

We are in the thick of earnings season, and so far the general trend has been as anticipated: modest if any top-line growth and more earnings beats than misses (albeit versus a low bar). But forward guidance has been the big decider on how the stock trades post-earnings, and the message has been decidedly mixed, as many companies have had to reduce guidance or otherwise failed to make the grade in other important growth metrics.

Small caps, mid-caps, Financials, Telecom, and Consumer Discretionary were among the market segments that hit new highs this week, even as bearish sentiment and short interest have risen, and there is still plenty of idle cash on the sidelines looking for a home.

Earnings season is now officially underway, but the Fed is still holding the limelight, as traders anxiously awaited on Wednesday the FOMC minutes from the June 18/19 meeting. Although several members are pushing to begin tapering off this fall on asset purchases (bonds and mortgage-backed securities), which spooked the markets, in fact it now appears that the controlling opinion is that the U.S.

I suspect there is no greater example of “summer doldrums” than the week surrounding the Fourth of July, especially when the holiday falls mid-week. From my standpoint, I certainly have received my share of “out of office” auto-responses on emails. For bullish investors, this is usually a time for caution, as any apparently dominant psychology of the market can be misleading. For bearish traders, it’s hard to get much momentum going.