Suggested Strategy: No change from last week – consider new long positions as Alerts are issued from either the Best ETF, Strong ETF or Top Stocks watchlists.
This week is the official start of earnings week.
FactSet is estimating Q1 earnings growth of 24.5%.
If FactSet is accurate that will be a large jump in earnings and very likely to support the general market to new highs.
If not accurate? Then we’ll see…
Lets take a look at the Wilshire 5000 index to see what kind of insight is available from the broadest measure of market timing.
Last time we looked at the chart I suggested that if the index can move above the 42,300 level as depicted by the black horizontal line, then higher stock prices in general are likely.
Not only did the index move above this level, it moved above with aggression.
3 of the 5 trading days last week show large increases across the broad market as shown by the W5000 index.
A chart of the VTI ETF shows even more buying pressure as volume has expanded on the weekly chart.
Both the W5000 and the VTI chart show that prices might be getting a little ahead of themselves.
So don’t jump in with both feet but prudent purchases as the market is increasing would be warranted.
