Your Personal Trader - DJIM Journal 2011

Just as the playbook had it written up, the Bulls punt return team was ready to go…”A shallow dip to Monday’s SPX open gap (if hit) would be expectation for dip buying.” . Once again dip buyers see the market through rose coloured glasses and shrug of CSCO as company specific to close flat. Same premise exists within the broad market discussed, more importantly, there is plenty of earnings stuff to trade away. If you’re an investor in cash, you are literally short the market.

Shadowlist

Momentum/earnings/“winners of ‘10 – 2 of the EPS play stocks noted in Journal this Q, JDSU >3%, JNPR >7% negated CSCO’s abysmal guidance and helped other networking stocks APQT/ BSFT ~4% each within DJIM’s list. This was helped by Alcatel-Lucent earnings and a 2007 IPO at DJIM, IPGP (use DJIM search for more on co’), an optical laser play that guided up big time. Timing couldn’t have been better as we’ve talked a trade back here the past 2 sessions. Also, good to see is even AKAM did not drag others in ‘sympathy’ as this group has been prone to in the past.
Commodities – Mildly better action in Steel, coal linked names, but overhang exists following hike/ Brazil.
Financials – quiet in space.
Consumer/Q4 Earnings – added WFMI on Journal yesterday and it continues to show earning winners are getting ‘v.positive ‘ reactions. This is something we discussed (below link) post bad reactions in mega names and thus bar being lowered etc. early in the season. Also, if a stock gaps 5-10%, it is still possible to get in and make points as in WFMI $58’s-61 today, RL yesterday, APKT and many more have demonstrated. IPGP was a little crazy much. Excellent earnings are being rewarded, it’s as simple as that.

http://www.djimstocks.com/djim-journal-1h-2011/2011/1/21/may-start-to-see-better-eps-reactions.html