Stocks Rally Despite Some Weak Earnings Reports

The stock market has put together a furious rally to
end the second quarter. The S&P 500 took out two important resistance
levels at 1,280 and 1,301. It is currently up against yet another
resistance point at 1,320.


TradeMaster’s
Jason Cimpl thinks we hit 1335 before a pull
back
, and told his subscribers this morning that he too thinks a pull
back is near.

It’s interesting to note how quickly the mood shifted from bearish to
bullish. The Greek debt situation suddenly became manageable, Bank
of America (NYSE:BAC)
settled a huge number of mortgage put-back
issues for $9 billion, and the drumbeat of a stronger second half of the
year was quite loud.

Is it Time to Buy Microsoft? (msft, orcl, aapl, intel, gs, goog)

Yesterday, we talked about
bubbles and tech stocks
. While it’s possible to argue that certain sub-sectors of the
Nasdaq may have some bubble-like valuations, technology blue chips are
definitely not in bubble territory.

As I noted, the Nasdaq 100 (NDX), which is
comprised of the 100 largest companies on the Nasdaq, is currently
trading with a trailing P/E of 12.5, according to the Wall Street
Journal.