| The market reversal from bear to bull has occurred, | | | | technology stocks are looking good. They have |
| but will the current rally be sustainable? This is a | | | | strong technology and sound balance sheets. |
| question that I have wondered about for quite some | | | | The markets are trending higher. At this point, about |
| time, since the current rally first began in early March. | | | | 48% of all U.S. stocks are above the 200-day moving |
| With major market indices up over 30% from the | | | | average, up from 33% a week earlier and from 22% |
| March low, it looks like the rally is real and could | | | | a month ago. The same goes for the shorter-term |
| extend higher in the near term. Yet, at the same | | | | moving averages. For the market sentiment to |
| time, there continues to be market risk that could | | | | improve, we need to see the moving average |
| drive stocks back down. You should be aware of this. | | | | continuing to trend higher |
| The U.S. housing and jobs area continues to be weak | | | | Investor sentiment continues to show signs of |
| and, while there have been some positive signs in | | | | improvement. The NYSE has been bullish for the past |
| housing, we still need to see a positive trend develop. | | | | 17 straight sessions, while the NASDAQ has been in |
| On Monday, there was more evidence of | | | | 12 of the past 17 sessions. These numbers are |
| improvement in the U.S. economy that is helping to | | | | encouraging. |
| drive some optimism that the worst may be over | | | | The Commodity Research Bureau (CRB) Index is |
| and stocks may be set to continue the rally. U.S. | | | | trending higher on expectations that global demand |
| home sales were stronger in March due to the | | | | for commodities will recover. |
| combination of reduced interest rates and cheap | | | | While there continues to be market risk, the |
| housing prices. Construction spending also increased | | | | investment climate is better now, yet I still get a |
| and this may reflect the impact of the government's | | | | sense we could see another sell-off at some point. I |
| massive stimulus program. We have said the key will | | | | could be wrong, but, should this happen, it could set |
| be the impact of President Obama's economic | | | | up a nice buying opportunity. |
| stimulus plan, as it filters through the economy, and | | | | Profit Confidential |
| now it looks like it is showing some positive signs. | | | | LOMBARDI PUBLISHING CORPORATION |
| On the charts, small-caps are faring well, with the | | | | News, Analysis, and Information Services Since 1986. |
| Russell 2000 trading over 500 and up 1.31% this year. | | | | One Million Customers in 141 Countries. |
| The S&P 500 also broke a key technical point at 900, | | | | Lombardi Publishing Corporation |
| while the DOW broke 8,400. With the break, the | | | | Financial Publications Division |
| S&P 500 is positive on the year. Only the DOW | | | | 350 Fifth Avenue, Suite 3304 |
| remains negative, but, given the current optimism, | | | | New York, NY 10118-3304 |
| there could be a move into positive territory later | | | | Copyright 2008; Lombardi Publishing Corporation. All |
| this week. Technology continues to provide | | | | rights reserved. No part of this e-newsletter may be |
| leadership, with the NASDAQ up nearly 12% in 2009. | | | | used or reproduced in any manner or means, including |
| I feel that technology will continue to be the driver | | | | print, electronic, mechanical, or by any information |
| of stocks due to the innovation in the sector. | | | | storage and retrieval system whatsoever, without |
| Companies will continue to look for the next great | | | | written permission from the copyright holder. |
| technology and investors will buy it. Even large-cap | | | | |