The market continues to maintain the early pop levels we had this morning. Intel's ( INTC) strong report has caught some short-sellers leaning the wrong way. Let's take a look at where the action is.
Earnings Winners: Intel, Altera ( ALTR), and Gannett ( GCI) are early winners. Tech: Microsoft ( MSFT), Cisco ( CSCO), and Juniper ( JNPR) are benefiting from the Intel call and analyst upgrades as well. Internet: Google ( GOOG), Priceline ( PCLN), Baidu ( BIDU), and Amazon ( AMZN) are all looking strong. Financials: Goldman Sachs ( GS) and JP Morgan ( JPM) are charging ahead. Transports: Railroad plays are leading the way once again. Union Pacific ( UNP) and CSX Corp ( CSX) leading the way. Commodity Plays: Freeport McMoran ( FCX), U.S. Steel ( X) and Monsanto ( MON) are bouncing up. Gold ( GLD) and gold-mining plays like Agnico-Eagle Mines ( AEM) are also up. Oil Plays: Oil ( USO) and oil-related plays like Transocean ( RIG) and Schlumberger ( SLB) are seeing an up day as well.
Treasuries ( TLT): Bonds are not working for the third day in a row. Earnings Losers: Yum Brands ( YUM), Janus Capital Group ( JNS) and J.B. Hunt ( JBHT) 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.