The market has been unable to take advantage of another series of analyst upgrades this morning. Let's take a look at what traders should be keeping an eye on.
Analyst Upgrades: Yahoo ( YHOO), Stanley Works ( SWK), Apple ( AAPL), and Google ( GOOG) are holding up the best after this mornings ratings boost. Ultrashorts: I am a little bit surprised at how well the SRS, SKF, and DUG plays are performing so far today. It may make sense to prepare to take a "taste" on the long side once again if someone wants to try a quick intraday Friday move here. Transports: Mild gains in the sector with FedEx ( FDX) a key name to watch here. Treasuries ( TLT): Appears to be another week of gains for bonds as the "flight to safety" trade continues.
Exchange Plays: Intercontinental Exchange ( ICE) and CME Group ( CME) are near the lows of the week. Earnings Losers: Shaw Group ( SGR) and Chevron ( CVX) are lower after last night's reports. Oil ( USO): No help from the news on Chevron, as other big names are going lower. BP plc ( BP) and Exxon Mobil ( XOM) are also caught up in the downdraft. Financials: JP Morgan Chase ( JPM), Bank of America ( BAC) and State Street ( STT) are taking a hit so far. Commodity Plays: Wakness has resumed for shares of Potash ( POT), U.S. Steel ( X), and Monsanto ( MON).
Unless things turn around this afternoon, it looks like the market will be going into the start of earnings season on a down note. I am waiting to see what trades pop up, but the bias right now has to remain on the short side, unless we get a tremendous oversold situation. The exchange plays mentioned above may be headed in that direction, but are not there yet. I would prefer to see a close or two off the bottom.