Well after doing these earnings plays for 15 seasons, there is a way the earnings plays react that is quite separate from the NASDAQ and the DOW.. I did not include the DOW because of an obvious flight to beaten down stocks like BAC, COF etc. Trading rarely has much in common with the DOW since most of our trades are in NASDAQ. Large cap NASDAQ stocks that I trade were weak today, besides the few internet earning plays I traded. Which stocks in the semiconductor sector rallied today? The ones that failed to rally before: AHAA, ALTR and ETEK.. Which ones were down? INTC, VTSS, QLGC, MU, AMAT, DELL
Strength seemed to ebb from the nasdaq stocks by 1:00ish. Now I did use charts of the indexes but I won't get technical about advancers/decliners and new highs versus new lows. That I will leave to others. My point of view this month is purely predjudiced by earnings plays. They held their intraday highs the most, while other issues just lost their momentum (ORCT).
I think its a stock pickers market and a 'beaten down' stocks market (i.e. BAC, RAD, RTN). The DOW flight to quality will probably end as soon as some techs and semiconductors rebound. Meanwhile its earnings, earnings earnings.. and even they will not hold up more than a few days before they fall prey to profit taking. For traders its the best market because we can change 'hats' whenever we want. If internets are carrying the market today, institutional players are out of luck, we still trade.
If semiconductors carry the market, then the 'safer' DOW stocks will lag and no longer offer that much attraction. We still trade.
If both the DOW and NASDAQ tank than we have the earnings plays. We still trade.... We have to be chameleon-like and trade in all markets no matter if cyclicals are hot or not, or nets are down or not. I did hold through earnings today (RNWK, ARBA) because I felt these stocks had more upside and would gap up and do well. I held EFNT.. I did not hold BVSN....or CMTN |
