DJIM #42 2009

The best possible outcome to a kick off in earnings probably occurred last week.  The market had no reason to accelerate upwards any further and it had no reason to sell off.   At the end of the week,  we simply consolidated and now await our niche to begin reporting without worrying what the broad market will do.   Now that real ‘Giants’ reported, except say AAPL/TXN on Monday AMC/ CAT Tues PMKT, we anticipate small caps/ mid caps to bring many surprises to the table as we had glimpses this will occur after a ININ  raise and nice report from an Industrial like CYT  and speciality story plays like QDEL.  So far, 61% of the SPX co’s have reported better revenue which is what the market has it’s eyes on this Q. Stocks like eg. JDAS, STLD EDU, CREE, EQIX  will give us early week reports that will put more light on what companies in our niche may look like this Q. 

So, be patient and don’t get up in the SPX, oil or USD story on a minute to minute/ day to day bumps.  Until niche report cards, we can go trade the commods’ after a higher oil last week and/ or China’s which will have eco data later this upcoming week that will show it’s strength.

As long as we hold recent gap 1079-1075, we don’t have to worry about the broad market as the Bulls hold court above here.