Good morning

            May has been shaping up to be a consolidation month. We have had what we call a barbell month with some sectors doing exceptionally well, and other sectors doing the exact opposite. On the semi-conductor side, it has been extreme moves on the upside and on the other end the software side has been thrown out the window. We continue to stay on the sidelines on the semi-conductor side, but I have been quietly buying some software names and ETFs as I do still feel this is an area that will be needed and it has some great potential going forward. The War in Iran continues and the longer this goes the more of an economic impact it is going to have. Oil prices remain at highs and as events unfold it will have a direct impact on oil prices either good or bad. However, with oil it is not a long-term demand issue, it is a supply issue so the inflation created will be a short-term issue.

            If I take a look from above and see that interest rates on bonds are going higher, inflation is higher, and the markets are at highs, I would think some sort of pullback is due to happen. Do not get me wrong, a pullback is not a major correction and with all the other long-term positives in the economy, it should be welcomed and used to buy undervalued companies. Tonight, we have Nvidia earnings, and I do not think anyone out there expects a poor earnings report, but to continue at the level they have been is getting long in the tooth. This could provide some short-term volatility, and we will use this to our advantage.

            Have a great day.