The market has reached equilibrium after a remarkable rebound in the past week but we understand it’s all tenuous.

Earnings season has begun, and while there haven’t been many warnings ahead of time, expectations haven’t been this morbid in years.

It means companies that miss will be punished big time, and those beating, handsomely rewarded.

The market is seeking leadership not just from names like Apple, but industrial stocks like Caterpillar and Chevron.  The underpinnings of a sustained rally must be connected with an improving economy.

The market has enjoyed its best week of the year and it came without any pom-poms or fanfare.  I actually love when the market rallies in the face of conventional wisdom and without much press.  (Every time there are big downward swoons, all media gets in the act from local free press to billionaires going out of their way to warn the masses - because they are so caring.)

I see a lot of buying in the ash heap, including Lumber Liquidators, which may have survived its brush with death.  If it does enjoy a sustained rally, the message will be to sift through the ashes for other broken opportunities.   More broadly, the street is still focused on the degree that China may actually be broken.

After spending a decade ridiculing the legitimacy of China’s economic data, Wall Street is desperate to see the current trends reverse and get back to the good old days of fudging numbers.

Everything and everyone is one edge these days, but don’t let anyone or thing force your hand out of emotion or even clear thinking beyond the very near term.

Have a great weekend.