Subject: What is DRIVING the Markets?

Just when the "sell in May and go away" crowd was gaining credibility, the Labor Department upset the apple cart with a stunning report of 165,000 jobs created in April. It also revised previous jobs reports sharply higher, causing stock prices to soar.

Will this be a year in which stocks prices defy the "sell in May and go away" strategy? It just might be, but why should we believe this month's jobs report anyway? It contradicts other economic data and just two days ago, Dr. Ben Bernanke, who should know what he's talking about, wasn't at all optimistic about the economic outlook. In fact, he said he's ready to prolong or expand his bond-buying stimulus if need be. So what's driving this market anyway?

Central bankers have unleashed a flood of cheap money, which has not stimulated economies and created jobs, as hoped for, but it is looking for a place to make a return. What better place than dividend paying equities? Foreign investors, especially the Japanese, are buying dividend paying U.S. stocks. High yield bond funds are buying dividend paying stocks and even central bankers are buying U.S. stocks. Why not? They print money at essentially no cost; then use it to buy solid dividend paying stocks. What a deal!

Of course, there's also the problem of reality. A rising market based upon cheap money is phony, not real. A rising market based upon jobs and an improving economy is real, not phony. It reminds me of the song, "It's Only a Paper Moon." A bull market without jobs is as phony as can be. A bull market with jobs is real, not Make Believe.

So, what’s the stocks that look interesting in the days ahead?

Badger Daylight, (BAD) provides non-destructive excavating services to the utility, transportation, industrial, engineering, construction and petroleum industries in Canada and the United States. Annual sales increased 21% over the last 12 months to $239.2 million. Leading 12-month forecasted earnings are $2.78 per share. Earnings are forecasted to grow at 15% per year. This stock closed today at $44.39 per share, up $0.80 per share for the week. Let’s say most analysts have a Target price near $51.00 or so. With an excellent combination of upside potential and financial performance, this stock sure looks like it is suitable for Prudent Investors. There are 12.3 million shares outstanding and its ticker symbol is BAD on the Toronto Stock Exchange.

Also, other Canadian stocks looking interesting to hold would be, MB, @ $15.00 target $20.00. ITP, @ $11.00 target $19.00, MRU, @ $69.00 target $ 93.00.

Stock in the USA that has been moving awesomely is REGN, with still predictable upside according to Vector Vest.

Love many, trust few, in this business, learn to paddle your own canoe.