Don't Be Shaken by Explosions Abroad

This column was originally published on RealMoney on July 11 at 10:53 a.m. EDT. It's being republished as a bonus for TheStreet.com readers.

When does it matter when you are overbought? When you have a train explosion in Bombay, that's when. If you are oversold, we send India down and cordon it off. When you are overbought -- and we are still way overbought -- you get the U.S. market rolling over.

Of course, Bombay is simply not significant to the earnings estimates of Bristol-Myers(BMY Quote), my endless example of what you need to focus on when these extraneous exogenous events occur.

Why do I say the train incident doesn't matter? Because tomorrow's wires will not have this story, and this market's institutional memory is about 10 minutes. What's more important to watch is the dangerous way that stocks are starting to encroach on their hard-won gains from after the last Fed meeting. What does that encroachment say? It says that earnings woes are already supplanting Fed relief. Hence the endless increases in Coca-Cola(KO Quote), Altria(MO Quote) and UnitedHealth Group(UNH Quote), which all have become horses. ...