The Friday before a 3 day weekend was expected to be slow and it was. Participants took off early and there was a lot of choppy meaningless volatility that indicated little and is not worthy of bringing to your attention.

After some solid gains on the week our main goal was to keep the portfolios at highs and not let profits slip away. We trimmed some stocks that had run the distance and added a few on dips that we feel haven been thrown out by participants because of boredom or lack of information. All and all we’re pleased with the week and still remain confident going forward.

After Wednesday’s break above trend the S&P 500 followed through and now looks to be resting before challenging highs. The Dow rests at yearly and 4 ½ year highs and also looks to be basing before another possible tick up. The index that troubles us is the Nasdaq that reversed today right after touching the downward trend line started in early January. We will keep an eye on this as it could either simply be one step behind or an indicator of a coming drop.

For the most part, influential earnings season is complete and now it’s back to the main topic of inflation. The market looks to be now expecting 2 more rate hikes and anything less would set the stage for a big move higher.

The #1 variable encouraging us to remain bullish is the extreme pessimism wafting through the air. Despite impressive moves it seems most participants are awaiting a monster move lower. At this point we are remaining cautious but don’t see it. We’ll continue to play the long side until the charts tell us otherwise.

Enjoy the 3 day weekend and we’ll see you early Tuesday morning.