Thursday May 31 Daily Market Assessment

Nothing Can Stop the Bulls!

Well, I'm convinced. After taking a couple of days off around the holiday weekend, the market came roaring back on Wednesday. First it got hammered on bad news from Shanghai, then it digested a weird report from last week's FOMC meeting. But when the smoke cleared from the bombardment, the buyers stormed the gates and drove all the indices into new highs. Both the DOW and the S&P hit all-time record numbers!

Even though the summer still looks to move sideways, as it usually does, I have to admit that only a die-hard pessimist would be bearish now. My equity positions on GOOG, VZ, VLO and CAT are all up strongly in just the past two days, and I think I'll break even on my options trades in May. I entered some of those trades with silly straddles and nearly got my neck broken. I'm strictly a vertical man, now.

Summary of Outlook: Near-term Bullish, Long-term Bullish!