1:15pm (EST)

The bulls are putting an explanation point on a strong month as they have once again pushed the major indexes to new 52-week highs.  Earnings and economic news continue to drive the headlines which have been pretty positive today.

Caterpillar (CAT, $115.29, up $2.65) is trading at fresh highs after plowing through Wall Street’s estimates.  The company reported a 425% increase in its first quarter profit which came in at $1.2 billion or $1.84 a share.  Last year at this time, CAT earned $233 million, or $0.36 a share.  Revenue jumped nearly 60% to $12.9 billion, up from $8.2 billion last year, and well ahead of analysts expectations for earnings of $1.31 a share on revenue of $11.7 billion.

The huge, 53 cent earnings beat has accounted for 20 of the Dow’s current 68 point gain which has pushed the index to 12,831.  The S&P is up by 3 points to 1,363 while the Nasdaq is higher by 2 points to 2,874.

We also like the strong move shares of Skyworks Solutions (SWKS, $31.49, up $3.98) are making today, up 14%, after crushing the suit-and-ties on their estimates as well.  We first profiled this stock for you 6 months ago in the mid-$20’s before it hit a 52-week high of nearly $38 back in February.  Since then, shares have slipped but have rebounded sharply today.  We love this stock going forward and our price target then was $40.  Still is.  At current levels, Skyworks is a steal.

We said on Tuesday if resistance were broken that there could be some chasers of the rally which is what we have seen this week.  We have a lot to cover in our Members Area, including a NEW TRADE for today, so we have to cut it a little short but remember to watch our near-term targets from this morning.  We will be back Sunday night with the Weekly Wrap which will be packed with some good information and what to watch for in May.

If you want a head start and would like to get Sunday’s Weekly Wrap or today’s NEW TRADE, click here.  The Weekly publication is 9-for-9 in trade recommendations which are averaging double-digit returns and we will be looking to add our next winner soon.

Have a great weekend everyone!

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