Our outlook is shifting slightly more positive today in reaction to the broad based “across-the-board” advancement taking place. A few notable and encouraging earnings reports and positive economic news appear to be the catalyst. With strong price action on the indices and volume on track to be higher than yesterday, it looks like today will meet the requirements of a “follow-through day” for the NASDAQ and S&P 500; a sign that increasing demand in the market will change the current trend back into the upward direction. If that is the case, our rules dictate we wade in a little deeper and incrementally increase our exposure in-line with the amount of market accumulation.  Today we begin positioning ourselves more optimistically, but also cautiously, as any errant news event could take the steam right out.

 

Best Returns,

 

Scott O’Neil

President, MarketSmith