Stocks closed out the first half of 2017 on a negative note, falling fractionally as volatility increased. During the week the Federal Reserve released its annual stress test which painted the banks as very well capitalized. As we look for the next catalyst, the obvious one is Q2 corporate earnings which will begin this week and the release of the Fed Minutes from the June meeting. We have noted continually that there remains an upside bias and the downside appears somewhat limited. Investors are still continuing to give President Trump the benefit of the doubt and earnings season is just around the corner. These should at least provide support around these levels with the potential for an upside breakout. As we noted here last week we suggested that investors “pare back some of your positions in technology at the periphery, but don’t go hog wild as we believe there exists long-term value in tech names. Diversification is always prudent. Although look a bit stretched at these levels given the trials and tribulations of the Trump Administration, Q2 earnings which begin in three weeks will most likely provide solid support not far below. In addition until this upward trend is broken in a meaningful way it is difficult to envision a bear market with this earnings support. Furthermore, should President Trump make some headway on tax and/or healthcare reform, stocks could head higher. For now, we continue to be tilted toward the optimistic side. Stay diversified. There is no need to be a hero. Your portfolio must be measured against your long-term objectives. Do not be caught up in the day-to-day noise of the markets.