The last three trading sessons have rallied in the morning, and sold off in the afternoon. Next week, we have three trading days left in the month of May. For those who have been overweighted in the stock market, you have had some wonderful opportunities to book some profits.

The S&P will probably close at a new high next week before profit taking kicks in next month. The stock market is clearly overbought and do for a sharp pullback. This pullback will be the set up for a summer rally that will probably begin around the 4th of July.

The TV set has been telling you that;

-Consumers would keep on spending
-Gas prices would come down
-Inflation was not a problem
-Jobs growth would rise
-Corporate profits would soar
-The dollar would strengthen
-And, housing has bottomed

Remember, the TV set is nothing more than a soap opera with 300 channels.

I am going to Atlanta today to coach a 15-16 year old baseball team. Enjoy your Memorial Day weekend, and I'll report back in on Tuesday. Be safe (on the roads, and in the market).