A Giant(s) beat...

Today's the day where you can almost skip the entire regular trading session and go straight to after hour action.   Why?   We hope we don't have to answer that question.    Basically, the day's action is very meaningless despite some not so good earning reaction to JNJ and downgrade of a few financial companies by Mrs. Whitney.    In fact,  SPX lost only three points and the other two indices are unchanged.   

What happened in after hour and what happens pre- mkt tomorrow (JPM ) is probably going to set the tone for rest of this week and beyond….“the official season kicks off Oct 14th with the Financials  and INTC“.   Everything before this was pre-game stuff.. AA etc,   now the real game starts.  As of tonight, the Bulls have led of the game with a lead-off “Homer”.    JPM  will make it back to back dingers, very likely.

INTC, one of the most influential technology company, reported earnings AMC that beat the most optimistic expectation.   In addition, INTC also guided next quarter much higher and with significant higher margin than the consensus.    In all, it's a very good if not a great report from this technology giant.

So, the question is, is this good enough for our market?    As far as Intel and the feeling about tech world, we think it's good enough, especially because of the implications for so many of the tech companies reporting later.  However, we still have many reports from many sectors to consider in the coming weeks.    In fact, we have JPM on deck in the morning to give us a first look in the banking world for the current quarter.    What we think that is NOT going to happen though, is that the market will get sold off like it did after INTC's last report.    Also, now we know who has set the bar now for earning reports as far as big company's are concerned. 

At DJIM land, we highlighted 2 previous DJIM eps listed winners, ININ  and BWY  in our journal last night as both companies came out with guidance.     While BWY did not breakout in a big way (still positive close),  ININ did what we asked for.  Still, the trading ranges for both provided some great entries even for intraday trades.  BWY ($1.70 range low to high/ ININ (3.50 range).   As traders, we just have to focus on the winner of the two going forward.    Based on the volume and reaction of ININ today,  we are expecting follow through in the coming days/weeks.    We are just hoping more institutions take a look at this little company start piling into it.    Also,  TRIT,  this is the one with the kind of trading momentum we look for and love.  AONE, another IPO here had good action late afternoon as well.

Bottom line,  it's going to be a busy week and earnings season.