Tame inflation, encouraging earnings reports, and positive minutes from the Federal Reserve meeting all came together to form the perfect storm for stocks. Analysts also noted that the recent decline in equities have drawn investors into the market in anticipation of a positive earnings season.

Today's Fed minutes suggest that rate hikes are likely near an end. Specifically, "Most members thought that the end of the tightening process was likely to be near" according to the minutes. However, the minutes also mentioned the difficulty of assessing the current situation. There is a tug of war between protecting economic growth and fending off inflation. The minutes stated that , "Some expressed concerns about the dangers of tightening too much, given the lags in the effects of policy."

As you may remember, the Fed agreed to a quarter point rate hike in the March meeting bringing the overnight rate to 4.75%. This is the highest we have seen in five years.

 
Dow Recommendations
Swing Trade - Flat

Position Traders - We sold the May 116 call and the 108 put for $600...nice!!

Option Traders - We liquidated our bearish trade on Monday April 17th for a profit. We then reversed the position. We are long a May 112 call, short a 114 call and a 110 put some were getting filled at $100!! Wow, we couldn't have asked for better timing.
 
Nasdaq Recommendations
Swing Trade - Buy 1 June Nasdaq MOO.

"You try to be greedy when others are fearful, and fearful when others are greedy" - Warren Buffet