History based CEO Projections
As we mentioned yesterday, the first quarter corporate results were for a transition period. The big issue for most investors is the forecasts going forward. As such I would not put much weight on the CEO forecasts we are and will be seeing. They have no clue and since things have been bad, they will defer to a position that things will be bad going forward. I would suggest that one not pay too much attention to their comments.
Keep in mind technology will be the leader going forward, and I am not talking consumer goods like ipods, cellphones, or notebook computers . I am talking about basic computer hardware and software that the the new America will be built on. The financial stocks will be the followers in the next stage of the rally from the October 2008 momentum low.
This week we anticipate that the S&P index should find support in the 822 area. Watch gold, it is trying to act like a panic buying spree is ready to unfold, I don’t think so and the 903 area on the gold futures should stand as resistance. The angry bears are out in force for what they see as a unfounded rally over the past 40 days. The next two days will be key in seeing whether they can get a decline started or whether they just sold into another basing area.
If the important levels mentioned above show indications of holding we will up our leverage on the aggressive portfolios. We anticipate that the next rally will be a stem winder.
The EMA ETF Fund NAV was 1034 at yesterdays close.
8:16 AM CDT
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