Last Friday was one of the most magnificent sessions we’ve seen in a long time.  Tons of green on the screen with greater participation and much better market breadth.   And this happened after a tough session that had many spying the exits.

Seesawing Market

There are still lots of unanswered questions and anxieties when it comes to the market.

• Earnings and guidance
• Inflation duration
• Administrative and legal headwinds

Earnings Season

First quarter earnings were amazing, but stocks mostly got shot down. There are signs this time winners will be rewarded as Levi Struss on Friday – although the stock faded into the close.  It’s early, but 18 S&P 500 companies have reported, and if this is a tell, it’s going to be the best earnings season ever.

Inflation

We get another read on inflation tomorrow and this could have a major impact on the market.  I would not make changes based on the inflation guessing game without serious trends and a read from the bond market.

Today’s Session

It’s all about moving into big mega growth stocks and out of everything else, including more speculative investments.

Portfolio Approach

We took profits in Consumer Discretionary this morning, and our adding a new position in Industrials in our Hotline Model Portfolio.