Coming off quadruple witching Friday stocks followed up with solid gains with the NASDAQ 100 leading the rebound. It is no surprise the NASDAQ 100 names bounce back as they have borne the brunt of the selling as of late. Financials performed well with the likes of JPM, MS, and BAC looking solid. There are plenty of names looking good and while there are always negatives this market is poised to consolidate and move higher. IBD pushed its market direction back into a confirmed uptrend. We have been cautious, but we have been getting new long signals hinting at a rotation rather than a new downtrend forming. Despite high valuations it appears this market is going to stabilize and have the potential to continue to push higher.

By all measures this market is stretched in terms of valuations. Whatever metric you want to use we are certainly at an extreme. What we are seeing is every Tom, Dick, and Harry coming out of the woodwork letting us know this market is going to crash because Price-to-Sales and/or Price-to-Earnings ratio are at an extreme level. Where are the articles justifying these high valuations? We saw those very articles in 2000, but now this uptrend continues to be the most hated Since 2009, just about every market pundit has hated this uptrend. Some have given up and left the market, but those who are left have been battered and bruised. There is no need to slam a stake in the ground and proclaim a market top. Many fail trying to time turns. Ride the long trends higher.

A solid start to the week. We would love to see this market build upon today’s gains. Let’s see how this market proceeds. Trade well.