Thursday's Stock Market Price Action Says Stocks Want To Go Higher

David H. LernerInvesting Group LeaderFollow5ShareSavePlay(10min)CommentsSummaryThe S&P 500 ETF reversed a sharp early decline, signaling bullish sentiment and potential for a sustained rally as markets discount recent macro risks.March's strong jobs report, with 178,000 jobs added and 3.5% wage growth, supports the thesis that stagflation fears are overblown and economic growth persists.Earnings estimates for Q1 remain robust, with forecasts up to 17%, suggesting stocks are undervalued and P/E multiples could re-rate higher from current levels.I remain hedged via SQQQ but selectively added to ATI, HWM, CRS, DASH, and UBER, favoring aerospace/defense and internet services while prioritizing cash for potential retests of recent lows.This idea was discussed in more depth with members of my private investing community, Group Mind Investing. Learn More » Ljupco/iStock via Getty Images Thursday’s opening for stocks started from the pre-market, were way down, and we could have easily tested the recent lows and stayed there. Instead, it reversed direction. Normally, market commentators will come up with a ready explanation of the market’s resilience, thoughThis article was written byDavid H. Lerner31.63K FollowersFollowDavid H. Lerner is an analyst with a decade of experience utilizing his professional background in software consulting and technology to identify market trends and provide long and short trade ideas. David employs a combination of technical analysis and market psychology to capitalize on narratives for outsized returns. He also utilizes “Cash Management Discipline,” a simple trading style to hedge against the volatility of today’s market climate.He leads the investing group Group Mind Investing where he uncovers actionable trading and investing ideas nearly every day. Other features include: long and short swing trade alerts, daily macro analysis, weekly articles, and chat for community interaction and questions. Learn More.Analyst’s Disclosure: I/we have a beneficial long position in the shares of DASH either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.