MARKET THOUGHTS

—–We know it is end of month week and we know there is a ton of earnings still to come out but:—–

—–The recent 10-12 day trading range is resolving itself to the upside. In fact, the market is broadening out as many areas that were lagging are now coming to life.–

—–The FINANCIALS, that acted poorly off of earnings, have turned right back around and looked to have bottomed.—–

—–The lagging forever RUSSELL 2000 and MIDCAP 400 are now actually outperforming. Again, the broad market.—–

—–All major indices are now trading above the crucial 50 day moving average. The SEMICONDUCTORS (SOX) is again leading the way. (It always leads up and down!)—–

—–So far, crappy earnings and no guidance are being bought.—–

—–We try to not rationalize why. After all, there is still plenty of bad news coming out. Just realize we will head back to some kind of normality and when you combine this with “unlimited amounts” from central banks (their words), markets will react. We also believe that even when we get back o normality, central banks will never roll back their nonsense.—–

—–To backtrack:—–

—–We thought A low was put in March 23. It turned into THE LOW. —–

—–We thought the move above range on April 6th was the move to a higher low. That day was never taken out.——

—–And now, again, looks like price is resolving above the past 10 -12 days range. So we get another leg up with some broadening out of the market. We now head into massive and we mean massive overhead resistance as markets move higher. We could see some backing and filling into these areas. More to come.—–