It was a down week, but a monster session on Friday. I think there is a growing belief there could be a somewhat soft landing, or maybe even a recession could be averted. At the end of the week, Fed officials were struggling to admit inflation was falling and, at the same time, keep up the tough guy & gal routine.

Technical View

If the market can pick up on Friday’s momentum early, we will see other tests of the heretofore impenetrable trendline. Closing above it starts a buy signal. Usually, trendlines must be broken and then tested as support. Upon holding, that would complete the buy signal.

The NASDAQ Composite is sizzling and looks to have a date with its 200-day moving average.

That meeting could happen this week after Microsoft (MSFT) and Tesla (TSLA) post financial results.

We have been more aggressive with cash in the model portfolio but will be nimble if something goes wrong. The truth is there could be one more hit if the stars misaligned, but the market is very close to the point of loading up and riding out the waves.

Portfolio Approach

There are no sector changes this morning in our Hotline Model Portfolio.

Today’s Session

Momentum is building with several asset groups looking higher.

• Bitcoin (BTC)breaking $22,000
• West Texas Intermediate (WTI) breaking $81 a barrel

Lots of former hot stocks shot out of the sky last year are trying to rebound.  Wayfarer (W) caught three upgrades this morning after announcing a huge round of layoffs last week.

Earnings haven’t lived up to the hype, but the street likes what it is seeing with major layoffs and companies refocusing on the bottom line rather than moonshots.

Busy week ahead with key PCE on Friday.