Dividend.com: Midday Playbook

The market continues to maintain the early pop levels we had this morning. Intel's(INTC Quote) strong report has caught some short-sellers leaning the wrong way. Let's take a look at where the action is.

Bullish

Earnings Winners: Intel, Altera(ALTR Quote), and Gannett(GCI Quote) are early winners.

Tech: Microsoft(MSFT Quote), Cisco(CSCO Quote), and Juniper(JNPR Quote) are benefiting from the Intel call and analyst upgrades as well.

Internet: Google(GOOG Quote), Priceline(PCLN Quote), Baidu(BIDU Quote), and Amazon(AMZN Quote) are all looking strong.

Financials: Goldman Sachs(GS Quote) and JP Morgan(JPM Quote) are charging ahead.

Transports: Railroad plays are leading the way once again. Union Pacific(UNP Quote) and CSX Corp(CSX Quote) leading the way.

Commodity Plays: Freeport McMoran(FCX Quote), U.S. Steel(X Quote) and Monsanto(MON Quote) are bouncing up. Gold(GLD Quote) and gold-mining plays like Agnico-Eagle Mines(AEM Quote) are also up.

Oil Plays: Oil(USO Quote) and oil-related plays like Transocean(RIG Quote) and Schlumberger(SLB Quote) are seeing an up day as well.

Bearish

Treasuries(TLT Quote): Bonds are not working for the third day in a row.

Earnings Losers: Yum Brands(YUM Quote), Janus Capital Group(JNS Quote) and J.B. Hunt(JBHT Quote) are down on the day.

Summary

I wish I could be more bullish here, but the beginning of earnings season tends to sometimes see an over-reaction from company results. I am concerned about the weakness in consumer-related plays like YUM and JBHT. Since Intel's revenue fell 15%, chasing the name here for a trade is not a sure thing. I would prefer to let shares run up here and look at parts of the market that may get sold off like the Ultrashort plays I have mentioned.

Baidu is now up $40 in 5 trading days after it appeared it was breaking down. The only long area that may have some legs may be in the energy space and I mentioned traders target yesterday's upgrades of APC and OXY as long plays. Oil-related plays are so oversold that a bounce can last for a day or two. Be sure to use trailing stops as the stocks move up.