End of Day Analysis

Well, it was a pretty bullish day overall.  I would say we are definitely in a market rally for now.  In a bull market, the market will generally close up on Fridays (meaning that investors are willing to take the risk of holding positions over the weekend - In a bear market, you will generally see the market close down on Fridays).    The million dollar question for now is how far the 5th way will go.  The leaders have resumed an uptrend after about a 6 week base (that is the minimum length for a stable base).  However, I like to see around a 12 week base breakout.  This just adds to the cautious optimism I am advocating.  I am still around 60 percent in cash with only 40% invested in the market.   Intuitive Surgical (ISRG) got hammered after a sell rating by an analyst.  However, the stock found support at the uptrend line and actually managed to recoup about 50% of the loss from yesterday.  Hoping that drop shook out the weak holders and the uptrend will resume.  But watch carefully and don't let your gains turn into losses.  Although I wanted to hold onto the EK stock, the overhead call resistance made me nervous and I sold April covered calls at $6.00 for 0.45.  If the stock gets called away, I will make some money.  If not, I have lowered my cost basis.