Message from INTC...

It's not so much a direct message from Intel to those who track the PC business, but to the investors/traders.  The message Intel sent to us tonight is that things are still rosy in the tech land.    The importance of the INTC  earning is far greater than that of AAPL.   Intel basically tells us of the demand of technology oriented products in both the consumer and corporate side.    This, in turn, tells us about consumer/ business confidence out there as far as this Economy is concerned. 

Things are definitely improving.  Seeing Intel do it again with a robust quarter and a great forecast leads us to believe that the pace of improvement isn't slowing down any time soon.     This is very important as to the justification of the recent gains.   Knowing that some of these key technology companies, or any bellwether companies that report great earnings is the reason why we have to stick to our current trading strategy.     No, it doesn't mean that we have to chase this market blindly on the back of of Intel's earning.   For all we know, this market can very well be set up for a sell on news reaction off great earning reports.    It’s not wrong to assume most of INTC upside is already in the stock, the question is if there is any carryover to rest of tech and market.    LLTC, provided the same type of Q as last,  it spiked AMC and gapped next day, only to never see those highs again.  We’ll watch it’s reaction closely. 

What does a great earning quarter mean to us then?   It means that we can safely buy into dips without worrying about the fundamental aspect of things. We saw this again into today’s trade, some early worry about Bernanke’s testimony on Wednesday, UBS’s negative call on regional banks rattled the market early, but the shallow pullback dip was bought once again.   Just eye the Bull channel on site from the other day, we bounce near the line at 1187.   One slight change in market flow today was morning upgrades didn’t help our Coals, Led’s, Casinos  as much as they usually do.   It could be nothing, but we’ll watch if this continues as a sign of these stocks getting overly tired.
  
JPM  is on deck for tomorrow and this is also one of those backbone kind of stocks for the financial sector as we all know.   In the past few sessions, we are seeing some back filling sort of action among some of the commodity linked stocks (steels) and China commodity smaller plays, we feel it's very reasonable.    In fact, trading many plays into their earning date may be a good way to capitalize the current rosy sentiment.    Right now, we simply have to see sectors other than technology that can deliver some good reports/guidance. (like CSX  tonight)