Even as bulls, we sometimes can't help but be amazed by the resilience of this market lately. Just when you think the market is showing weakness and a potential rollover is in the works, you get this incredible support that simply pushes away any further declines. The final score for the plays on our watchlist has been eerily similar the last little while. No matter how volatile they trade intraday, the majority of them seem to turn green before the day is up. Is this getting old? We hope not!
We had a couple of reports which really set the tone today. FLR, which was alerted last night, gave a total of 24 points, of which 17 or 18 points can be had if you bought some in AH last night. Buying at the open would not have hurt either. Keep in mind, FLR isn't exactly a small cap so by getting this kind of gain on a day is very noticeable. On the small cap side wise, we have CSIQ , which had a very good report and stock is instantly rewarded with a gap up and strong intraday gain. This is the one we noted to watch for earnings along with SOL (reports tomorrow AM). Remember, SOL guided recently and that's why we played in the first place. Will they raise '08 again? Technically, CSIQ is probably the best solar stock out there among the smaller ones. Even though today's finish isn't exactly grand, we still think there's definitely more to come from this one. ENER, the recent solar addition had another great day. At this point, we aren't sure at what price level this one is willing to settle and so letting it ride may be the best strategy. To top off the solar sector, the big brother FSLR had a new closing high above $300. This move is about as stealthy as it gets because most solar traders were probably dealing with CSIQ, SOL or ENER all day.
As far as commodity plays go, coal sector had a group move and many of our favourite notched new highs today, ANR continues to blossom. In terms of other plays, we bought some V toward the end for a rebound play here. There's good odds that the low from two days ago will be held before we see a rebound. MR also looks like it's ready to move higher after three days of consolidation from its initial earning pop. So be ready to get this early DJIM gem back in your book. If you recall, many of these earning plays don't finish after their initial pop. Just about every earning play we encountered the last while moved significantly higher after the initial move so we are inclined to buy on dips right after the initial pop. It worked great with V, SOHU, FSLR.. and pretty much every commodity play out there recently.
Bottom line, it is ok that the indices don't make weekly highs because as long as the sectors on your watchlist are in play, that's all we can ask for
CPI at 830am.