Greetings from Paris as we head for Normandy today. Will be touring the D-DAY sights on Memorial Day. Cannot wait for this. Of course, left my cell phone in an Uber and still not recovered.

Not much has changed. The good get gooder…the bad get badder, simple as that. Amazingly, even with major indices at or near their highs, we still count about 40-45% of stocks not participating with many in bear phases, some brutal bear phases. To be repetitive, we would continue to avoid energy, oil&gas, most commodity names, most retail especially the big guys, most auto-related especially auto parts retail, many of the reits, biotech,big telecom, most financials and a few other areas.

As far as financials, keep in mind, they are still holding the next line of support. The point is they are just sitting and under-performing right now.

The good news is that there is still plenty that is working. In fact, we continue to see a lot of tight action in leaders after they made good moves to the upside. This could be setting them up for higher prices. Those areas remain the nasdaq/ndx-types in internet, technology, semiconductors,  fiberoptics. On top of that, the megacap favorites continue to show hardly any distribution whatsoever. These are the areas we will be watching most closely. As long as these areas are working, markets are fine. But with the narrowness, if the good starts to get bad, trouble could be straight ahead. But to repeat, these areas still look great, act great and show zero distribution. As always, if things change, you will know it.