I came into the week with the view that the market would move sideways as it digested the previous 3 weeks sharp rally. My bigger picture view remains favoring bulls. We have had a couple days this week including Wednesday where the buyers stepped in on relatively minor pullbacks to push the market back up. That’s bullish, but not as much you might believe. If the market starts going down again, I think there is less chance the bulls step in so early. With the bullish push, we saved the market even minor pain a couple of times, but if sellers press on it a third time, expect some further follow thru.

More big cap earnings this week will be a factor. Waste Management (WM) had a wild ride being both sharply lower immediately after earnings, to sharply higher near a new high a couple days later. While I expected higher prices, I am content that I sat out that earnings roller coaster …. I certainly wouldn’t have gotten greedy and stuck around after it came back from the dead to a plus. I had 7 positions in February to mid March, and did very well on the slide. Have none now, and am back to the adage “patience pays”.   

Thanks,

Joe

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