'Hope' rally
Wednesday, July 20, 2011 at 07:50AM
Demi/ YourPersonalTrader in CRM, FOSL, FTNT, LULU, MSTR, UA, WYNN

As been repeated for weeks, the market is a headline watching match for the fast traders.  At least this time it favoured trading to upside on what was really ‘empty’ macro headlines with some micro page turning.

It all started with Europe in the morning with some finance ministers ‘opinions’ (nothing more) raising optimism towards an agreement at the summit (July 20-21).  This enthusiasm was surely to be curbed by Merkel’s comments at the US market open, but market stayed giddy with Housing sale # surprise . In the afternoon another upside leg ensued as “Gang of 6’ debt ceiling proposal made the rounds. Once again, empty headlines with nothing concrete and possibly just more proposals amounting to nothing as usual.  All in, market ran on Macro ‘hope’, but likely rekindled some on earnings follow through from IBM, WYNN last night into the morning with PII,HOGS (disc. spending),OMC,KO and Hermes in Europe. 

In all, nothing macro resolved, but market tested the important 1295 successfully and it coincided with a better earnings picture emerging pushing market back over 20ma benchmark.  It’s too early to draw conclusions on earnings and/or turning away from political ‘macro’, but a rally is a rally and we’ll take it. Another hope is that many were flat footed today and come out to chase despite uncertainty abound. Remember, first leg is always short covering, especially as seen in SOX components today after just hitting fresh lows.

Shadowlist

Consumer - As alerted in morning for TIF FOSL LULU UA  all NCH’s, Hermes earnings put bid on high end, Adidas comments and potential end to NFL strike helped out UA. 

Earnings Q3 linked-   WYNN  post earnings succumbed to profit taking in regular trading hours, but it’s not going off list and will be a buy again.  This sell off possibility was noted to watch following EDU.  PII  added late June at 109 before running 11% to $122, once again put in a very healthy Q   (SHS  ran up as high 23%. Since pulled back, so keep eye out for EPS date).  http://www.djimstocks.com/djim-journal-1h-2011/a-few-names-to-list-into-q3piishsplcm.html.

IBM big catalyst earnings put bid on Mega caps, but also software Shadowlisted CRM  MSTR  to NCHs.

AMC, FTNT, RVBD  demonstrated high beta stocks ran or are running into earnings calls and if expectations are not handily beaten, you’ll be slapped down.

Article originally appeared on Your Personal Trader (http://www.yourpersonaltrader.com/).
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