Most of the earnings season is past us and there were no big surprises. Earnings aren't blowing out expectations like the past because consensus numbers are higher than before. This market has been dull, so I haven't done much. I still lean towards the bullish side in this tape. Europe has been remarkably strong over the past couple of weeks so it is fair to say that the European worries are out of the picture for the time being. It was a worn out story anyway, and those that wanted to sell Europe already have.
The only real problem out there that could derail this market is China tightening. But China doesn't have that high of a correlation to the S&P like Europe does. So I'm not sure what will be the catalyst for the next correction. It could be the Fed laying off the dovish tone in its March or April meeting. The Fed will likely stay close to the party line of low inflation, high unemployment for this upcoming meeting.
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