I'm not surprised to see the market moving higher this morning. The funds are going to try and get those quarterly returns a couple of percentage points higher. Its easier to do in a market like this with little conviction and light volume. There will likely be a tailwind because of this, but it obviously won't last long.
So while I do believe we could move a bit higher, I still expect some type of correction during the summer months. I've written at length about this, and still feel this is what is likely to happen...
As far as stocks, I'm not chasing anything, but I am actively looking to buy some stocks. Whether or not the economy strengthens, its probably going to be profitable to have exposure to equities. If we see a good amount of inflation, as many are predicting, stocks will probably follow, at least to some extent. There aren't a lot of great alternatives right now either. You can't get much of a return on cash, and investors will be getting antsy with their money. I expect money to gradually flow back into the market (I'll keep an eye on fund flows and report some results).
It will be a short, but interesting week.