Pockets of Opportunity: Street Sense

We've had a good sampling of earnings so far, and the confessionals continue this week. All in all, we've seen a decent showing. Some of the follow-up price action was due to a previous run-up (as was the case with IBM(IBM)). For the most part, the results and guidance have been positive. Sentiment still continues to be the driver of action.

Even with Friday's pullback the markets are significantly overbought in the interim. Now, that's not necessarily a bad thing, but you wouldn't want to get on board with new trades just yet.

Technically, there are some areas of strength that beg for a look on the next pullback. Financials may have run ahead and the giddiness was sold. That's OK, however, as there may be opportunity. The financials have been crushing estimates. At the beginning of this week, technology had been mostly mixed but was once again a pullback away from being overbought. ...