Despite disappointing results out of big technology companies as GOOG and IBM the market was able to reverse early morning losses.  Volume was certainly aided by earnings, but it was higher across the board nonetheless.  Day three has come and gone and in front of a long weekend without notching a day of distribution in light of geopolitical risks is likely a win for this attempted rally.  We’d rather wait for confirmation prior to jumping into the market with two feet.  Even though the past few days has been positives for the market we still are not out of the woods just yet.  Heading into the weekend today’s market action was on the positive side and we’ll see what next week brings.

Sentiment continues to favor the bulls, but the AAII survey remains to the neutral camp.  NAAIM index remains elevated with the index sitting nearly 76.  Interestingly enough there were no bearish bets this week.  Despite all the bearish chatter active managers weren’t actively betting against the market.  Scanning a few FB trading groups everyone does appear to be conditioned to buy the dip.  Whether or not buying this dip will work, but our process over time will take advantage of any market with far superior results.

The focus now should be on energy names as we continue to see new highs from this industry.  Utilities aren’t likely to produce big winners.  Yield seekers are in love, but we want to grab stocks with the ability to move more than 100%.  Stay with what is leading this market and at the moment we are on energy names.

Enjoy the long weekend!