This market sees nothing but rainbows and butterflies ahead. No worries, no fears. Although backing and filling is a necessary aspect of a healthy bull market, history shows that it can go on for awhile without. Now that the Dow has touched 12,000 and the S&P 500 came within a whisker of 1300, perhaps the bulls will be ready for a much-needed respite.

The market posted a big red candle today. It was much overdue … and in fact needed for a healthy market. It simply cannot go up in a straight line and engender confidence among investors. Backing and filling is a necessary aspect of a healthy bull market.

Earnings Season is the Key

by David Brown, Chief Market Strategist, Sabrient Systems

Top Stocks for 2011:  Up +5.23%

Sabrient's 13 Top Stocks for 2011 -- our Baker's Dozen --  are up an average of +5.23% since December 31, 2010.

These are GARP stocks -- high earnings growth at a reasonable valuation -- from companies that  have solid accounting practices.

The Energy Sector has demonstrated a surge in technical strength to lead the market higher this week, and at the same time it has surged in the SectorCast rankings.

Let the Earnings Season Begin

by David Brown, Chief Market Strategist, Sabrient Systems

This week brings a clean slate among stock traders as the holidays and end-of-year positioning has come to an end. The market continues to show signs that it wants to pull back a bit to work off its overbought condition and allow technical indicators like RSI and MACD to cycle back down in their normal swings. But the cash just keeps flowing in.

May the Recovery Continue

by David Brown, Chief Market Strategist, Sabrient Systems

Sabrient's Top Stocks for 2011