Not the best kind of showing...

When you look at the final box score, you'd swear your book should've performed at least half decent today.   However, unless you are concentrated in a few and selective plays such as MA (increased guidance), V, GOOG etc., this might as well been a down day for many of us if we didn't take profits from the big previous day run.  Toward the end, it looked like the bounce in the markets which started couple of days ago may start to lose some steam as profit taking took over.   Excluding some market beta stocks, most of the plays on our watchlist were under pressure the whole day.    Of course, this is evidenced because of the heavy exposure in commodity sectors on our list.   If you see $CRX down over12 points at the open, you know what will likely follow next.  The stocks.  The one particular sector that looked really worrisome to us is the solar sector.     Sure, you can say that the solars are capable of bouncing back in a big way on any day and any time.    We are however, at this point, remain very cautious on this sector. 

Note-There are positive reports this morning on German subsidies and so FSLR is getting a boost premkt so far.

On the other hand, the reversal of crude oil ( 5% intraday slide) in the morning put pressure on many commodity plays.    It just seems whenever crude goes, the entire commodity market goes.    This includes oil, ships, steel, coal, chemical, solars etc.    Does it sound strange?   We have pointed this fact out a while ago that every resource play is tied to oil directly or indirectly and one way or the other.      Out of all of the commodity groups, coals are still showing the best technical and with steels at a distant second.     This doesn't mean that we are writing off all of the other plays at this point.   It simply means we are focusing more on the group(s) that have the best technical.     Given today's decline from many commodity plays, we'd like to see if they are going to hold the low from last week.     In our opinion, last week's low from most commodity plays will hold and we'd like to see that as a short term base to build our trades on.   Hopefully, we'd see some convincing action next day or two before stepping back into some plays.

Dell's earning is hitting in AH's and this no doubt will give a positive tone to the market in the early morning.    In the technology front, we still really like SOHU RIMM and to the less extent GOOG.    We'd love to buy some more on the dips but those dip opportunities are very short lived and we only end up regretting afterwards if we don't take what we get.     This is a short week so we can assume that some players are not even trading this week and we'd get some better action next week.    

Bottom line, as long as the financials hold and the overall market does not spiral downward much further, we will have some good trading ground to play on.    Also, when you have plays like MA/V popping madly once in a while, trading won't get boring this summer after all perhaps.