BUYERS ARE STILL OUT THERE

The market rebounded nicely from yesterday's pull back. I've been impressed with the strength of the buyers. They are still out there. I don't know how much longer they can keep it up. Alcoa reports earning on Monday and they will officially kick off Earnings Season. After Alcoa, there will be about a one week lull until the big earnings push begins. If the market doesn't sell off on Alcoa's earnings, I would expect it to move sideways to upward until the next Monday (April 19th) when 189 companies report their earnings. I just don't see how this market can rally on the earnings...even if they are better than expected. I think a lot of institutional investors will try to sell into any good news that comes out. If we do keep moving higher, I like the bullish pattern on T (AT&T). I also like CAL and WMT if they can get back above their 10 day MA in the next few days. Make sure you wait for some confirmation on those two. I might do a credit or debit spread on WMT since it tends to move more choppy and sideways. Another reason why I think we could move a bit higher over the next few days is the price action on the DOW Transportation Average. I've told you in the past that it can sometimes be a leading indicator for the market. It failed to reach a new high earlier in the week when the S&P 500 and the DOW were making new 52 week highs. I thought this was bearish and that it could signal the beginning of a pull back. Today the DOW Transportation Average closed a new 52 week high. This might mean the market could go a bit higher. Have a great weekend!