The Stock Market Continues to Look Very Good, but a Credit Crisis is Still a Possibility this Year.

Table of Contents:

1) Some like it hot.

2) The situation in Japan has the outside potential of becoming a crisis for global markets.

3) The earnings reports/guidance over the next two weeks need to exceed their very high expectations.

4) Rotation is a great thing, but we have to keep a close eye on the chip stocks.

5) Index charts…..Does the “island reversal” in the S&P 500 on Friday matter?

6) The rally in the energy stocks is catching a lot of institutional investors offsides.

7) The material stocks are being led by the gold miners, but other stocks also look attractive.

8) Gold should rally a bit further, but it’s getting quite overbought.

9) Summary of our current stance.