well that's what it feels like...when you have no patience like us, especially after the early week snapback rally. Now, it seems its the same old as late day fades rule, yesterdays a bit earlier than the previous and then a battle at around 1450 on the SPX with buyers stepping up to close it above this line. Indecision is running on both sides (but the shorts may be more nervous), maybe it is plain exhaustion and we all just need the weekend to get here quick and some headlines to give this market a course for the short term. Still, yesterday was not without what's important to all of us and that is there were a few names off DJIM Journal that were making some noise...
MELI, seems a few agreed with us and came to play as MELI got pushed 5.5pts from lows to highs of day. Earnings reaction are not always a first day thing as MELI showed yesterday. Now with it showing up on a very THIN new highs list across the market, especially those tracking NCH's, we'd hope the idle money comes here to spend some time.
QSC, the other day this had a big buyer eating up shares at $4 even, millions of dollars worth, sooner than later this was pushed to the high 4's as such action seemingly always does. Yesterday's pullback might be sufficient, a plus is it was on fairly light volume. 7mln to 10 to 11 to 3mln volume. If this was a quick flash in the pan, you'd think we'd have more selling yesterday. Anyways, this regained the $4+ level and closed at the highs of the day. A quick volume move might be in store in the short term, watch for that as a possible entry if not holding already.
STV, EJ.... the concentration here the past week was to use STV as a possible pre earnings mover on the heels of WX and EJ. STV had climbed about 25% since the week started and to many that is good enough!. So, it is not surprising profit taking was part of the equation after STV released earnings. All stocks are different and in the case of EJ the pre earnings move translated into profit taking the day of earnings giving it some leg room to move forward on a good report as we saw last night to recent highs. As we've noted recently regarding WX...expectations are over the top on these Chinese IPO's. You are not going to get a surprise reaction and a fast move up like with other nice earning reports that come out of the blue and immediately push a stock higher. These Chinese IPOS' would not be trading on the NYSE now if tremendous earnings growth YOY didn't put them there in the first place. Great YOY numbers are expected and you could say priced in. What these stocks need to get a big push higher right after earnings is something almost impossible unless you are a GOOG!. What we look at instead of YOY growth is how a company performs sequentially to get a better read of how business is progressing the past few Q's. STV's revenue came in at 14mln after 20mln for the past 2 Q's, so there is nice growth that is ongoing. Also, things like operating margins, in the case of STV are just not to be found in many other stocks. What these stocks now need is the firms to possibly set a good tone in their reports, initiations in the case of STV. As we said, we like both reports and STV might have been a bargain last night after hours at $32,33, but it is the market the will dictate the stocks path and a firm or two the day(s) after...a good market would help too!.