..Cheap is in

Today, the market officially entered the Twilight zone as Dow smells 12K on the heels of IBM, GE, etc. stuff.  Oh boy, now valuation takes precedent over higher multiple/beta names!.  If this keeps up our 2011 Shadowlist will look a Value Mutual Fund, so basically the market better ‘correct’ at some point to make ‘growth’ stocks look like values again.

Shadowlist

• Momentum/earnings/“winners of ‘10–   VMW  earnings were top line strong, but a few negatives (on margins and some cautious remarks) is enough disappointment for 2010 winners to come up for sale, particulary the ‘clould’ space.   Even before the report the sector was flush with early selling in APKT RVBD CRM FFIV  in a rallying market as investors have given up seemingly since FFIV report and instead flock to lower valuation tech earnings.

Shadowlist addition:  A one time DJIM play returns off a record Q at~$20. (SILC)

• Commodities-  Weak dollar/China continue to make the space a mixed bag.  Solars  (shadows FSLR, TSL ),noted last week are still moving forward.   A conviction buylist reco’ boosts FSLR , but the group is mostly moving ahead and into the State of Union address (Tues.)and renewable energy speak.