EARNINGS

Earnings season is certainly one to remember. Of S&P stocks reporting so far, a record 83% have beat expectations. The past average as been 61% beating expectations. Companies are beating on both the top and bottom line. Estimates are being raised and forward guidance is generally strong. All of this bodes well for the current rally.


After starting to sell stocks over a week ago, Wednesday it appeared the market was going to split open with the opening gap down. By the lunch the market had recovered and it dawned on me that the right side was the long side.

I repurchased positions in CREE, PCLN, and GMCR. All three bounced well. However, GMCR reports on Monday. If GMCR can get back above the 50 day moving average by close Monday then I will hold for earnings. If not, I will close out the position on Monday.

The market continues to shake off news stories and issues like Greece and Goldman Sachs only to make new highs. It is quite simple that the market is not done going higher. Many new stocks are making new highs and really starting to stretch their legs out. I will not be surprised to see some climax moves in the likes of BIDU, CREE, AAPL, NFLX, CMG, DECK, etc.

This week there are several opportunities setting up:

WCRX $28.49
ASIA $30.00
AIXG $39.00
APKT $21.00
FIRE $27.65
OSTK $21.87
PXP $34.80
SWI $25.00