ColmsUM

Since my last post, I remained mostly in cash for all of last week which seemed work out quite well. This week we had a pretty good bounce on Monday off of Whitney’s upgrade of GS ahead of earnings on Tuesday. Earnings were better than expected and the market taked on some small gains on Tuesday but was timid ahead of the earnings report Tuesday after the bell from Intel. The reaction off of INTC’s report was very well received and we had a trend higher throughout the day today. While the action in the overall market has been very bullish with the SP-500 moving up close to 6% over the last three trading days, it has been very hard to find good technical setups with much of the rally being oversold bounces in the worst beaten areas such as commodities and tech. So I have been a little reluctant to name too many stocks on watch here. I have resorted to quick trades looking for quick gains but have remained very hesistant and don’t have a whole lot of confidence in holding much overnight with so many big reports due out over the next few days such as GE, C, JPM, and BAC to name a few. The market has been completly news driven over the last couple days and I doubt that will change through the rest of the week.

Although, a lot of positives can be taken away from the action. The moves over the last three days have basically negated the head and shoulders top so many traders have been fearing and I think if we get decent reports and some pullbacks in individual names many charts will soon be setting up in our favor. The key thing to do here is not to try to force trades and make sure you remained disciplined and keep and open eye out for good risk/reward opportunites. We have some very good earnings reports in small caps (HITK, ININ, IEC to name a few) under the surface and I will continue to track and build watchlists in these names and wait for setups.

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