I am going to take a bit more cautious view to start the week. Many of the stocks I liked buying a week and a half ago have gone up substantially. There are some secondary stocks (that I didn’t mention) such as UAL and LVS that I was observing to watch how they participated. And the answer was not much … In fact these stocks are just one hard selling day away from new swing lows.

Additionally JP Morgan tried to rally but is also back now flirting with new swing lows. And we still have the issue of the plethora of companies that gapped lower on lousy earnings. I don’t have the stats on the earnings misses but it certainly seems to me it’s the most serious collection of earnings misses since 2008. So overall at least a pause is due. If we get some two way volatility that may be enough to gather some strength for another run, but I would curtail my former bullish outlook right here at these levels of approximately 4516 in SPX. I am watching all of the aforementioned JPM, LVS, and UAL. The latter has a trendline in the chart attached that I think may be ready to get broken. Many stocks may well make new swing lows. If that occurs I want to see how they handle the next level of support. Such a test may well provide the basis for another rally with a change of leadership. But for now I think patience is warranted. It is really a game of patience. Sit tight till the ducks line up. The ducks don’t look co-operative to me right now . 

Thanks,

Joe