Markets concluded the week and month on a solid note. Both the Nasdaq and S&P 500 gave the bulls something to cheer about. The Nasdaq recorded its fifth consecutive up week gaining 1.2% and CLOSING at the highs for the weekly range. Notice that the last 4 weeks volume has accelerated with each successive week even with the summer doldrums upon us. True some may have wanted a stronger advance on the backs of some well received earnings reports from some tech heavyweights but this index has ran quite a distance. That being said the S&P 500 fell marginally for the week by .2%, but I think it is ready to play some catch up. The old adage does never sell a dull market and it has traded in a very monotone, listless fashion the last 12 sessions. All 12 days finished within 14 points of each other creating a bull flag pattern, and the flag pole which gives you your measured move is 175 handles, so a very powerful move can be in store. Most investors I talk with are still in more cash then they would personally like and they are waiting for the hopeful pullback that bull markets never give you the courtesy of catching. Of course traders have to be nimble and things can change on a dime, but the longer markets remain at this altitude the probability on them going higher increases as capital will return to the equity markets in a fear of missing out way.Will the market continue to climb the wall of worry in the month of August? No one knows and one will do their best to determine where capital has been deployed. For the week technology advanced by far the best with the XLK higher by 1.35%. Only four major S&P sectors advanced this week and healthcare rose .3%. At the bottom of the weekly returns were the utility, energy and staples groups. Delving deeper the only sector to lose ground for the month was energy with the XLE falling .5%. Friday the group was strong and we heard all week about how the sector was in a bear market now and when that becomes a strong consensus view opportunities usually present themselves. I tend to like to buy strength but I witnessed many bullish candlesticks in the oil patch Friday. Does one try and pick a trend change or go with an overheated tech group that rose more than 8% on the month? I would take the former route with some tight stops as crude did reverse near the round 40 number today as it was not to long ago we heard Gartman saying 60 as it traded at the round 50 number.

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