Tech Game Keeps Up...

Well, so far, the momentum and high beta technology names have done a great job of keeping this market's up.    Not only have names like GOOG  and AAPL  run up near the recent high before their report, they deliver the kind of reports that make them gap up to new high.   In the case of AAPL tonight, it ran through its all time high on a bountiful and definitely company specific factors.   Simply,  nobody can rival AAPL, their revenue growth, high double digit  potential and therefore the broad market  maybe realizing this is not running off the report.  Anyway,  this report is just a mind boggling accomplishment as they destroyed even the important whisper numbers market is eyeing.  The fact that AAPL's trading at $202+ in after hour on very decent volume just goes to show the kind of mentality of our current investment community.     The message is loud and clear, people would still pay for growth and people would pay up for an iconic growth names like AAPL with a passion.  ATHR. a DJIM listed from last Q,  beat it`s raised guidance for Sept and issued strong guidance for Dec.

As far as today`s tradie, the bid on weakness continues and longs are really not selling holds. Importantly no collateral damage has been done from the GE BAC  reports. We are a hair away from that all psychologically important SPX 1100 level.    Right now, it doesn't even feel like SPX 1100 is a wall even though shorts have been definitely lining up here.  A break at 1100 should trigger buy stops, volatility.  At this point, we simply have to accept the fact that earning enthusiasm may continue to carry this market.    While the big boys are doing their part by keeping this market up, we are also keeping our eyes on many smaller company’s reports to look for opportunity.  

Again, there's plenty of reports this month that we are keeping our eyes on.   We are also looking for some various collateral reaction off commodity report  such as the STLD 's report tonight and CAT 's 'outlook' will be crucial tomorrow and maybe more important than AAPL's report for the economic recovery game. 

Yesterday, we noted the trade ideas outside of EPS to look for included the higher crude continuation from last week ( crude ticked higher off USD weakness again today) and a China trade due to anticipating strong eco #’s later in the week. DGW +6.7% NCH, FUQI 8%,. EJ 7%, (UTA , HMIN, BIDU 3-4%  off our China shadow list.   Tomorrow, look for weakness (short term) short opps' in Brazilian stocks/ indicies  due to a 2% impose on capital foreign inflows in an effort to curtail Real`s lift and prevent bubble in their mkt.  Wait to see if this materializes and becomes a noisy issue and spreads as a Global issue.  The short term idea here is US inflows have sustained Brazil's Equity markets and this logically can't make many happy.