Strong earnings reports from Google (GOOG) and IBM (IBM) capped off another very good day for the bulls. GOOG only beat by a few cents but management did a nice job of lowering expectations, and that has caused a big spike as buyers regain confidence and shorts are squeezed. IBM also has low expectations and is benefiting nicely.
The market looked a little shaky to start the day but an interview with hedge fund manager David Tepper on Bloomberg TV brought in buyers and they ran all day. His thesis can be summed up as "What else can you do with your funds?" He moved the market with that thesis last year and did a nice job of it again today.
I'm tired of repeating lately that the trend is your friend, but it is working very well. If you try to ride the momentum, you should be doing well. I understand the inclination to want to call a top; even the bulls would like a rest. However, what works is to tune out all the gurus who keep trying to predict when the market will turn. They have been wrong -- and are still wrong -- and have lost quite a bit of money in the process.
It is very easy to talk yourself out of this market, and there are many who will assist you with reasons to do so. It may sound simplistic, even naïve, but I'm going to stay bullish until I see some weak price action.
Have a good evening. I'll see you tomorrow.