If today’s buyers knew the IBM number in advance,  they would have simply stayed away from buying up the market today.    It's just amazing how one tech giant (INTC ) can produce such great results while another tech giant (IBM ) can produce results that are so lacklustre.    Of course,  it's unfair to compare the two as they do represent two different segments of the tech business in many ways, but still TXN report AMC made sure to show  Semi growth momo’ is demonstrating some weakness ahead.  Unfortunately, the semi’s (>2%) were the best group today,  but tomorrow will face selling pressure with the overall tech sector, instead of follow through!.

So, this is how the Economic recovery playing itself out?.    Some companies are benefiting and executing well while some companies just aren't.    This creates all kinds of confusion as to where the state of the economy is, besides the macro pressures already present    Is it going forward still, stalling or going backwards?    Maybe in a few more months the picture will become clearer,  but it doesn't feel like the odds are overwhelming  for any camp at the moment.    So, what the traders do and keep doing?   Regardless of the events that take place, fading the big moves is the game keeping the market in this summer range.   What it means is that people sell into extended strength while buy into extended weakness and shorts cover.    While you can say that we've had some lower lows in the short term, it hasn't really changed the fact that market can move nearly 10% from the recent high or low on a moment's notice.    In other words,  it's very tough to trade in this environment and we can't fool ourselves by saying it's an easy game.

Thankfully, as big of an impact as IBM or BAC represent to this market,  they don't paint the picture of the whole Economy or even the micro picture fully.   We have many more big name corporations to report and we shouldn't assume "SPX 1k here we come", just yet.    What we can do to help our trading setup is to enter trades after an earning announcement slowly.   If a stock gets a very rosy and strong reaction after the report, chances are, they can potentially move even higher after the initial pop.    

AAPL, GS, and JNJ are on deck for tomorrow.   After tonight‘s reports, we need a good surprise report or two to have some ammunition to debate the Bears with.