I have three things to ponder as we head into a huge first quarter earnings week. 

The first is a great shot of all the earnings due from ‘EarningsWhisper’ account on StockTwits:

During big earning weeks I mostly watch and see if I can get any dislocations to trade. I don’t start new positions in general. 

As we head into the week the market is super super strong. Take a look at the percentage of stocks trading above their 50 day moving average:

  
This rally caught most ‘professionals’ underinvested and they remain so. The ‘red zone’ doesn’t mean as much to me as the ‘green zone’ (where I get excited to add to stocks). 

As strong as the markets have been overall since 2009, the financials continue to sputter. Take a look at their relative performance to the S&P:

 The government huffed and puffed to keep the ‘too big to fail’ banks alive and they got what they needed in big fines and new regulations.

Not all ‘financial’ has churned … Visa, MasterCard and The Nasdaq continue to chug along as their rails have not been bested by the relentless pace of startups and technology. 

What is working best ?

Consumer stocks like Pepsi, McDonalds, Johnson and Johnson and Chirch and Dwight (condoms). My 8-80 list might have to add a consumer beverage Goliath and sex proxy especially if Church and Dwight should make a move for Tinder! 

You can follow my 8-80 list in real time using the ‘SparkFin’ app:

What do I worry about these days ?….

We complained and hated on the banks but now that the banks have been fined to death who will the government turn to for money. If they can’t take it from big cap tech look for even more money printing and tax increases.