This has been a good week for the market. The economic releases have exceeded estimates and the S&P 500 is two points away from an all-time high. Today is triple witching and I would not be surprised to see a breakout. I’m not looking for a run-away rally, but the S&P 500 could be up 10 points if the move gains momentum.
Empire Manufacturing was better than expected and so was industrial production. Consumer sentiment was a little light, but it has not dampened spirits. The market found support and we should see a grind higher.
Overseas markets were positive and the next significant news will be released Wednesday. Federal Express will post earnings and we will get flash PMI’s. These releases will give us some insight on economic activity.
The market has all the ammunition it needs. Analysts should start raising earnings estimates for Q1 and stocks will rally into announcements (April 8th). Asset Managers are not getting the dip they hoped for and they will get more aggressive with each passing week.
Stay long and build May call positions gradually. My call position is at about 40% of my target.
The market found support this morning and the S&P 500 should make a new all-time high.
When we do get dips, add to positions knowing that any decline will be brief and shallow. Asset Managers are trying to get in.