Hope everyone enjoyed the holiday and weekend!  Wall St. certainly did and seemingly wants to continue to do so!

As we noted last week, the Wall St. operators typically try to make sure that stocks perform well around holidays.  We also mentioned that the news cycle, with Q2 GDP being booked and earnings due out that should reflect a very strong Q2, was setting up nicely for bulls.  However…

We were also concerned as to what could happen if the indices and key stocks didn’t hold important technical levels they weren’t far removed from last week.  It turned out that we shouldn’t have had any worries at all, at least until this point in time!  Everything’s coming up roses for stocks now!  The holiday vibes and thin markets, which make getting a real read on things difficult, were just the tonic that stocks needed.  They’ve had an easy time of it ensuring that a technical breakdown was averted and now the bulls are back in charge for the moment and maybe beyond????

That’s more than fine with us as that ebullience has helped our lone bullish idea from last week continue to power up.  JNJ was never going to be a world beater but fortunately it has moved up respectably.

We mentioned PFE and MRK late last week so let’s touch on those…

PFE and MRK may continue to power if the professional levitators on the street of schemes keep the good vibrations flowing into the heart of earnings season.  We’re not fans of these low liquidity gaps because they leave stock prices vulnerable to quick “back and fill” maneuvers, but, hopefully, they’ll just keep pushing.

Finishing with JNJ, please have a good luck at our graphic and consider rolling and other possibilities in light of the chart if you decided to become involved with the stock:

Sincerely,

Wayne