| Fellow Investor, We've been looking forward to 1Q earnings, which start with Alcoa (NYSE:AA) on April 11. Yesterday, we heard from a few companies. As the last of the 4Q reports come in. Red Hat (NYSE:RHT), Micron tech (NYSE:MU), ConAgra (NYSE:CAG) and Oracle (Nasdaq:ORCL) all posted good numbers. That may well be enough to keep the bullish bias for stocks over the next couple of weeks. Of course, a lot depends on the situation in the Middle East and Europe. The violence in the Middle East could certainly worsen. And while the debt problems in Europe have only been a periodic roadblock for U.S. stocks, there are no guarantees that EU won't start getting stingy with bailouts. That could be a problem, seeing as how Portugal just decided it would rather have a bailout than a prime minister spending cuts on his mind. Still, a couple weeks of simply obsessing over the U.S. stock market 18 hours a day would be a welcome relief... *****Given the earnings form Red Hat, Micron and Oracle, we should look for tech stock to take a leadership role if the rally is to continue on to the next resistance level at 1,335 on the S&P 500. I've given you my thoughts on the Apple Complex of tech stocks. And they were certainly out in front yesterday. If you've been following the tablet/smartphone story, then you know that about a month ago, an analyst or two started suggesting that would be a glut of tablet computers on the market, as companies rush get in on Apple's (Nasdaq:AAPL) success. Too many tablets would mean slower moving inventory, lower sale prices for devices and lower profits for device and component companies. That, in turn, might mean slower development cycles, layoffs and less investment in new equipment. In other words, the virtuous cycle that's been driving the semiconductor and other tech sectors would turn vicious. The strong move from the Apple Complex may be an indication that fears of a tablet glut were a bit overdone. In any event, it's not likely to hurt Apple any time soon. The company has reportedly sold over 2 million iPad 2s already. | Special opportunity, article continues below.
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| *****Foreign investors bought $11 billion worth of Japanese stocks during the Nikkei plunge after the earthquake. That was the most since 2004. It's expected that the Japanese economy will rebound strongly with the rebuilding effort. But my favorite economist, Morgan Stanley's Stephen Roach, says that the economic rebound won't stick. The rebound is "not going to change the big issues that are still bearing down on the Japanese economy, like weak productivity, declining population because of aging and the lack of effective and coherent leadership," Roach told Bloomberg. Morgan Stanley is also projecting that Japanese GDP will shrink 3% this year. *****Bespoke Investments reports that the S&P 500 moved above its 50-day moving average on yesterday's rally. Additionally, over half of its stocks are also above the 50-day MA, a bullish sign that the rally should continue. Our own Jason Cimpl TradeMaster Daily Stock Alerts has been seeing the same bullish signs. Yesterday, he told us that the S&P 500 would likely take out resistance 1,301 and target the next resistance point at 1,335. So far, so good, Jason... *****I erred the other day when I said the tangible book value for Bank of America (NYSE:BAC) was around $12.60. It's actually $11.66, according to Forbes. Now, tangible book value is a "bricks and mortar" valuation. It does not include goodwill items like name brand. It is often referred as the liquidating value. Have a great weekend,  | Ian Wyatt
Editor
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