As March Madness begins the market had a solid quiet inside consolidation day.  Biotech stocks were once again the talk of the town as many stocks were jumping higher.  Once again small cap stocks were the winners today with the NASDAQ Composite just behind.  The Dow led to the downside as pressure from a rising dollar continues to be the excuse for the Dow’s inability to keep up with the Russell and NASDAQ.  A very good session as volume came off while price remained within yesterday’s wide range.  It is important we continue to either consolidate like today or move higher.  This market continues to be positioned to push higher.  The real question are you ready?

Certainly biotech stocks have been quiet busy moving higher.  JAZZ continues to push higher after breaking out this week.  Twitter seems to be all over ESPR after its tremendous run.  Today’s move certainly does give the feel of at least a short-term top for now.  The stock also shows you why you NEVER chase a stock.  Who bought at 118.95?  Speaking of Twitter the stock TWTR looks to be moving towards a breakout.  Volume was not overwhelming, but at least today’s price action was decent.  Keep an eye on the stock.  JUNO another biotech had a huge day as the stock moved 17% from yesterday’s close.  It is not something we are about to chase from an end-of-day basis.  There are plenty of stocks out there and we continue to have our stocks working well.

Taking a look at sentiment shows a lack of bullish across the board.  NAAIM exposure closed out Wednesday evening at 68%.  Active managers were reducing their equity exposure week over week.  Fear over the Fed could explain it, but given our trend it appears to be the wrong choice.  AAII survey was dominated by the neutral camp.  AAII Bulls ended the week at 27% while Bears only at 31%.  Those who answered as neutral for the next 6 months ended the week at 41%.  Given where sentiment is it would not be a surprise if this market just continued to march higher.

March madness is upon us and it is a wonderful time of the year for those who are basketball fans.  As for this market we continue to find new longs and have yet to see many sell signals from our holdings.  Keep with the trend until the evidence suggests the trend is over.  Have a great weekend.