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.

Bullish

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.

Bearish

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.

Summary

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.

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