Still On Training Wheels

464 0f 500 S&P stocks rose yesterday, It was broad based, excellent breadth, but as usual, volume lacked. A win is a win and just like in sports, you can win ugly. The Bernank chirped more “accomodative” language yesterday and that’s all that matters. I guess he feels the economy can’t ride on two wheels yet. The bond market didn’t reflect this though. I didn’t think the language was that powerful though, and I think it was more quarter end window dressing than anything else. Not only is it the end of the quarter, but this week is also fiscal end for some companies and fiscal “year” end for countries like Japan. The monetary morphine continues.

Every chart looks like a Picasso again, many are overextended like $CMG, and yesterday $AAPL stuck it to the skeptics again, as it found more life and squeezed a few more shorts just for the hell of it. $AMZN looks like AMZN again, and it broke through its 200 day moving average yesterday. Window dressing? We will know soon.

Technology did well, but the real story is the financials $XLF, as the ETF came within two pennies of that 16 level yesterday. XLF is starting to flag on the weekly and it looks higher. We’ll see if there is any serious follow through in the days ahead.

Coal continues to get hammered, but the fertilzers seem to be setting up for a move higher. Energy $XLE, is just hanging around, but with the dollar probably heading back to the dirt, I’m watching the group to get long.  Stocks like $HAL $SLB and $BHI are having trouble and look a little broken for now. They may set up soon as longs soon though. It all depends on your time frame.

Surely the Black Swan Folks will be reappearing at these levels again and everyone has an opinion, that’s what makes a market. The market has already reached the year end targets of many of the “gurus” and “pundits”, so that puts them in the rare position of being right way ahead of schedule. So what do they do now? I don’t know , but Abbey Joe Cohen and many of her ilk just got new life.

Right now I’m riding the wave as I buy em’ and bid em’ while taking profits along the way. April has a tendency to be a decent month for the market, but could be setting up for an epic “sell in May and go way”.  We’ll see. I’m looking for the banks and tech to lead for the rest of the week. Good luck.

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