..and picky..picky aren't we!. After the 3rd 3% day on the indices in less than a month, traders were in a corrective mode and excellent earnings were tossed to the side in many respects. How else can you explain MON being taken down yesterday on the same numbers they only guiding up 2 weeks earlier?. What did the crowd expect in 2 weeks?. Last night we had RIMM report excellent numbers and guidance and the highest price it saw AH's was in the low 120's. Not exactly the same exuberance as we usually see from a mighty report from RIMM. Are these reactions a negative?. In our view..no...as we are just glad the market did not do what it did 2 times off huge surges last month and that is give it up big time the next day, even with Bernanke's potentially damaging words in the market. The market hit some technical resistance on the SPX and NASD and we need to do some corrective trade after the latest rally and no matter how good earnings are as of yesterday, they too need to be taken in stride. Also, many stocks here need to set up to go forward once again, so have some patiance. Believe that these earning reports are in the back of the minds of Bulls and Bears as they possess the ammunition to go forward and they both know it. The Bullets won't and can't be used up to blow forward now as we have the employment report on Friday and so we'd expect some subdued action today heading into it. UBS hasn't helped this morning by D-grading CSCO, but this should be pushed under the rug soon enough.
Yesterday was an oil/energy day ( RIG, CLB off list here) and this included the Solars moving which had a lot of company specific news as well. We all know how deadly solars could be and after this recent run, we'd be careful chasing as there many more things out there we'd prefer to trade...the steels/coals are still cooking..X, AKS, CLF ...the RIMM types off our list
Even though we'll probably get some subdued and defensive trading before the employment report, it doesn't mean there won't be a 'pocket' of strength in some sector and that is what we'd concentrate on.