The market continues to maintain the early pop levels we had this morning.
strong report has caught some short-sellers leaning the wrong way. Let's take a look at where the action is.
are early winners.
are benefiting from the Intel call and analyst upgrades as well.
are all looking strong.
are charging ahead.
: Railroad plays are leading the way once again.
leading the way.
are bouncing up.
and gold-mining plays like
are also up.
and oil-related plays like
are seeing an up day as well.
: Bonds are not working for the third day in a row.
Janus Capital Group
are down on the day.
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.
At the time of publication, the author had no positions in stocks mentioned, although positions may change at any time.
Tom Reese and Paul Rubillo are senior editors of Dividend.com. Visit Dividend.com for more dividend stock ratings, picks, news, and analysis for long-term and income-seeking investors.