What a Difference a Week Makes

The last post was on April 30 when I note the market looked sloppy and tired. It was but that was also the end of it. Five straight advances thru midday today and we are back to new highs. Don't argue with this bull market as you will be on the losing end of that trade more often than not. Some of the biggest winners from the last month exceeded expectations and continue to run. KNOL, DECK, RS, DOLR, LZ, RG, & PCU to name a few and not one is a household name. Yet most of these best names are over $1Billion in market cap and most would fall into the large cap classification. Some of the old names that still garner the media hype - GE, MSFT, INTC, MRK, to name a few - have improved markedly but still suffer from overhead resistance. There is still so much stock waiting to break even and that will most surely slow returns. The best performance will come from new stocks that are underowned but have the best corporate results forcing buyers into them to keep pace with the Joneses. And, it appears to me that the larger cap stocks are gaining relative ground to smaller cap stocks. The best area appears to be in the $1 - 25 Billion range.