Last week tied up a respectable 38-point gain in the Dow, with similar percentage gains in the S&P and NASDAQ. While the Dow ended the week on a flat note, one day does not a trend make.

In the second quarter, the S&P returned 15%.  This quarter looks to have a similar result if the recent leanings toward growth continue.  Despite these gains, we are still well under the old peaks in the market, giving plenty of room into which to grow. As the market continues to be stable, one may reason that all those who got out of the market will get back in, as there is still a lot of money that was taken out and has not come back in.  Only 15% of investors are fully back into the market.  Bringing in the rest should drive up demand and, inevitably, prices.

However, only 20% of current investment letters are bearish. It can be argued that all money that is going to return to the market is back already, and we should not count an influx of money to bolster stock values. We continue to go forward with caution, but continue to look for opportunities to take advantage of the current market trends.