It's good to see the market higher today on the news of ECB QE EUR60 per month through Sep 2016. Just as QE in the states took time, this too will take time for it's effect to take hold. I am glad the market is not down; avoided increased volatility for now.
Earnings have not been good this quarter. In particular, it seems to be weak guidance where the majority of the misses are. I like the market up here, and I think it could run up to a new high if we get some decent earnings reports. If the reports remain disappointing and the market shows some weakness, I'll be headed out the door. My main worry is that weak guidance is going to highlight estimates are too high. This could pressure equities until the revisions are complete. One thing that makes me feel a bit better this earnings growth y/y for the first 2 quarters of 2015 is only 3.5%.
Michael Grove, CFA