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MV Weather Report: Bears Left Out in the Cold


Rain or shine, we review the day's biggest stock stories.

The bulls had the upper hand today, and, for the fourth straight week, the S&P 500 closed higher. Today the tape initially sold off on the jobs report, which was worse then expected. But, like all dips lately, it was bought buy the bulls.

The tech sector was strong because of Research In Motion's (RIMM) earnings report. The company reported a truly strong quarter, beating EPS estimates by $0.06 and issuing upside guidance. Professor Sean Udall believes the stock is headed for its 200 DMA, and he may be right.

Apple (AAPL) and Amazon (AMZN) also had nice up days on the strength of RIMM. Another tech stock in the news today was Google (GOOG), as there's a report that the company is considering purchasing Twitter, the popular social networking site.

The energy sector was another pocket of strength; investors flocked there on the expectation of greater fuel demand. Some stocks of interest: Transocean (RIG), Diamond Offshore (DO), and Schlumberger (SLB).

The change of character in the market can't be ignored any longer. The momentum has clearly shifted to the bulls. This still may be a bear-market rally, but the bulls are in charge. A month ago, we would sell off on a jobs report like we saw today - but now that dip was bought.

Professor Jeff Cooper weighed in with his thoughts to subscribers of his service. Here's an excerpt:

"Given the possible backtests and other considerations from my report this morning as well as the fact that 852 S&P squares out with today/ Monday, I wanted to send out this alert as a heads up so as not to get any more carried away by any spike into the close any more than the correct posture would have been to get carried away on the short side going into our March 11 pivot. The time to reassess the strength of this market will be subsequent to this buying stampede.

"Continuing higher right now, right here is NOT the way a healthy market acts any more than a long distance runner can go the distance without inhaling. Otherwise they become vulnerable to exhausting."

Readers of the column know that I have thought the market was getting ahead of itself. I do believe that significant risk is right around the corner, as most major companies will report earnings within the next few weeks. We know the numbers will be bad - it's just a question of just how bad, and where the guidance goes.

On that note, I'm off to enjoy the weekend. Have a great weekend, Minyans! I'll see you on Monday.
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No positions in stocks mentioned.

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