Monday Recap

A very strong start to the month as predicted by one of my quants and another strong Monday (Monday's have been the best days for the bulls in the last couple of years. Also the beginning of the month has a strong bullish seasonality to it as well). We saw cumulative ticks finish at near 90,000 as it just trended higher the whole day. Other market internals were also very strong as A/D lines for both the NYSE and Nas were 2000 and 1100 plus respectively. Breadth was also very strong with up volume at 90% on the NYSE and 80% on the Nas. One must continue to go with the trend here and I'm starting to see more short term and intermediate term bullish signals triggering. With that any pullback is a good entry point to enter long positions. Quants are predicting more upside and limited downside if there is any.........Friday's job report will be interesting but it has probably been discounted. Interesting to see that bonds are still holding up fairly well. Again, it's a bit unusual to see both bonds and equities rally at the same time as I pointed out earlier but it's probably more of an indication of how mutually exclusive these two groups are at the moment. If you love treasuries then you hate equities and vice versa. Of course other factors help too such as low inflation and the Bernanke stating yet again that monetary policy will continue to be supportive of growth ie keep interest rates at near zero till hell freezes over......