Morning Comments

The stress tests were officially released yesterday after the close. The market has reacted favorably to them with a gap up this morning.

The pace of layoffs slowed in April when employers cut 539,000 jobs, the fewest in six months. But the unemployment rate climbed to 8.9 percent, the highest since late 1983. Keep watching the unemployment
rate since it is key for the economy.

The Nasdaq is currently on an 8-week winning streak. It’ll have to move up well today to continue the streak.

Overall it’s been a good week. The higher highs and higher lows model continues; the intermediate term up trend continues. The Russell is almost 50% off its Mar low; the S&P is almost 40%. In the grand scheme of things, I consider this a bear market rally, but as I’ve stated numerous times, I’m not going to try and guess a top. If the market wants to go up, by all means, let it go. If you’re bullish (I have been and am in the intermediate term), ride it for everything it’s worth. If you’re bearish, be patient. You should be thrilled at the prospects of shorting at a higher level.

Our first target of S&P(925) has been reached. Great week, lots of solid breakouts. Lighten up before the weekend.