It's May 1st Monday and the markets aren't showing any signs of weakness. All of the major indices are up on the day with tech clearly leading the markets' charge higher. So, we asked John Monroe from our very own Elite Opportunity Pro here to give us his thoughts on where these markets were headed, where the strength will be and why. The answers were pretty insightful. First, his thoughts on the overall markets were that the entire earnings landscape is and will continue to drive the markets higher on a long-term basis, despite interest rates rising. For example, he pointed to the fact that even just this quarter - so far 57% of companies have reported their quarterly earnings, 75% of them have beat estimates, while only 16% of them have missed. That's a huge number, he says, one that's likely to continue. He went on to explain trailing P/E's right now for the S&P 500 are right around 23, which historically is a bit on the high side, but when you look at projections all the way out to 2018 the P/E is projected to go sub 20, which hasn't happened since 2014. That's pretty good bottom line growth between here and there, as well as a very attractive earnings backdrop to support higher levels across all of the major indices. He also pointed out some insight from Fact Set - during the month of April, analysts lowered earnings estimates for companies in the S&P 500 for the second quarter. The Q2 bottom-up EPS estimate (which is an aggregation of the EPS estimates for all the companies in the index) dropped by 0.7% (to $31.89 from $32.12) during this period. How significant is a 0.7% decline in the bottom-up EPS estimate during the first month of a quarter? How does this decrease compare to recent quarters? During the past year (four quarters), the average decline in the bottom-up EPS estimate during the first month of a quarter has been 1.5%. During the past five years (20 quarters), the average decline in the bottom-up EPS estimate during the first month of a quarter has been 2.3%. During the past 10 years, (40 quarters), the average decline in the bottom-up EPS estimate during the first month of a quarter has been 2.5%. Thus, the decline in the bottom-up EPS estimate recorded during the first month of the second quarter was smaller than the one-year, five-year, and 10-year averages. In fact, this marks the smallest decline in the bottom-up EPS estimate for the index for the first month of the quarter since Q2 2014 (-0.2%). This all points to a very bullish landscape going forward, but one that's not likely to come with some technical hiccups along the way. We talked about which sectors are likely to outperform going forward and he quickly pointed to information technology, healthcare and financials as the big three earnings drivers going forward. He did point out how attractive certain infrastructure plays like copper are for the near-term, but his overall growth theme remains just about everything tech on a go-forward basis. Technically, this is where he paused a bit - citing some potential near-term weakness developing, but that the markets do still have every right to continue higher. He pointed to this daily chart of the S&P 500 and mentioned there is a distinct possibility we could be range bound, and that we should know fairly soon. He honed in on the fact that although the advance/decline line on the S&P all seems orderly right now, it was the advance/decline ratio that is starting to become a bit of a concern. He pointed to that huge increase in the ratio back in March, but the important aspect of what he showed me was what was happening just prior to that event. He said the advance/decline ratio was slowly deteriorating for a few weeks before we got that big spike, which was then followed by a pretty sharp selloff shortly thereafter. If we get another one of those big spikes, he says, we could see the markets get the rug pulled out from them in very sharp fashion. Finally, he said although these markets could go higher from here, he doesn't think they're going all that much higher before we get a fairly substantive selloff. However, he also said it will be the best buying opportunity we will have had in a long time once the dust settles. We hope that helps you navigate the near-term, but if you're interested in getting quality names John Monroe and his team at Elite Opportunity Pro are predicting will outperform the major averages on a go-forward basis, all you have to do is click the banner at the bottom of today's newsletter and sign-up. It only takes a few minutes, and it could be the best $99 bucks per month you'll ever spend. Chart Technicals Suggest Strength Developing - VBIO, KTNNF, CMXC and PTOTF For various reasons, we're getting some nice technical set-ups in the above mentioned small stocks we've been covering lately - albeit for very different technical reasons each. It might be a little soon to completely confirm if a few of these are ready to start making some nice moves, but if what we're seeing pans out there might be some nice returns in the cards for traders who are paying attention. The daily charts of both Kootenay Zinc. (OTCQB: KTNNF) (CSE: ZNK.CN) and Patriot One Technologies Inc. (OTCQB: PTOTF) (TSE: PAT.V) here look like they're trying to put in some trade bottoms right now, finally. They've had a rough go of it for weeks now, but if either or both of these ideas can build the last few days of settling strength, there does exist potential reversals in both ideas as soon as this week. With most penny stocks relying so heavily on news, all either of them would need is some fundamental news of substance and it could end up being a whole new ballgame. We've said it enough times - the best time to buy these type of stocks is when they're down, so let's hope the companies can deliver something compelling over the next several days. Vitality Biopharma, Inc. (OTCQB: VBIO) and Cell MedX Corp. (OTCQB: CMXC) on the other hand have already confirmed a reversal of sorts with VBIO being the stronger of the two right now. After hitting bottom back in late March, the pure cannabis play has continued to trade up the charts, already producing about an 80% off that March low. However, the move has come on virtually no significant news whatsoever. In the event the company's got something good up their sleeve, we could see a major move in the days or weeks ahead, as the buy side pressure continues to build. Considering the stock has already seen highs above the $4 level, traders and investors should probably continue to take notice of what VBIO has been doing in recent days. Cell MedX Corp. (CMXC) has been holding its own as well following last week's extremely bullish move. After a few days of settling, the stock is having another good day today. Any sort of substantial upward movement in the stock over the next few days could catapult the stock north of $.60 cents per share. I'm sure that's something CMXC investors would love to see without twisting their arms at all.