Dividend.com: Midday Playbook

There is definitely nervousness in the market ahead of Google ( GOOG) and IBM ( IBM) reporting after hours. Let's see what is moving to the upside and downside for now.

Bullish

Earnings Winners: Harley Davidson ( HOG), Baxter International ( BAX), PPG Industries ( PPG), Novartis ( NVS) and Polycom ( PLCM) are doing well in today's session so far.

Analyst Upgrades: Cerner ( CERN), Qualcomm ( QCOM), Walt Disney ( DIS) and Raytheon ( RTN) are holding up the best of today's upgrades.

FedEx ( FDX): Doing its best to keep the transports in the positive.

Fertilizer Plays: Takeover rumors lifting shares of Mosaic ( MOS) and other fertilizer plays.

Small-Cap Stars: VistaPrint ( VPRT) and STEC ( STEC) are hitting new 52-week highs.

China Plays: Baidu ( BIDU), Netease.com ( NTES) and Shanda Interactive ( SNDA) trading up once again. Baidu is getting a bit ahead of itself, but the Google report may be a big influence heading into tomorrow.

Bearish

Earnings Losers: Xilinx ( XLNX), Cintas ( CTAS), Nokia ( NOK), Marriott ( MAR), Amphenol ( APH), Charles Schwab ( SCHW) and Genuine Parts ( GPC) are all down after negative earnings reports.

Financials: Shares of JPMorgan Chase ( JPM) and Wells Fargo ( WFC) are drifting in today's trading.

Exchange Plays: CME Group ( CME) is lagging once again. Intercontinental Exchange ( ICE) is down slightly.

What's the Trade?

I talked about the Ultrashort plays this morning ProShares UltraShort Real Estate ( SRS) and ProShares UltraShort Financials ( SKF) as potential long opportunities. I would look at these trades as just for a day and would not want to keep them open in front of Google and IBM's earnings reports after hours. I'm not sure how the companies will do, but the bullish bias in the early part of the earnings season means a short bias can be painful.

Oil ( USO) is rebounding off of earlier lows, but oil has been a dismal place to be recently. Gold ( GLD) is slightly lower, but if economic data does not show us a lift, the argument for gold becomes tough. I would not want to be short GLD over $90. Treasuries ( TLT) are rallying today after slumping the previous 3 trading days. I would also ring the register on previously discussed long plays Anadarko ( APC) and Occidental Petroleum ( OXY).

Retailers are giving back some of yesterday's gains. Transports are holding up and moving sideways. That likely means the averages may potentially have a sideways day. You don't want to overplay your hand in a sideways market; better to wait for the best risk/reward opportunities. I see some good ones setting up.

Be sure to visit our complete recommended list of the Best Dividend Stocks as well as a detailed explanation of our ratings system.

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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