The market is off earlier highs but continues to maintain some positive momentum as traders believe an averted CIT Group ( CIT) bankruptcy is a big positive for the markets. Let's take a look at where some of the action is.
Human Genome Sciences ( HGSI): Stock is up over 200% and can really zoom higher if it can get through this morning's opening print of $10.90. Earnings Winners: M&T Bank ( MTB), Haliburton ( HAL), Eaton ( ETN), Hasbro ( HAS) and Johnson Controls ( JCI) are up following quarterly results from this morning. Analyst Upgrades: Allergan ( AGN) and Caterpillar ( CAT) are seeing some nice price action, while single-digit plays like CBS ( CBS) and Elan ( ELN) also gain on analyst moves. Financials: Goldman Sachs ( GS), Visa ( V) and MasterCard ( MA) are leading the way higher. Momentum Winners: Netease.com ( NTES), Fuqui International ( FUQI), Perfect World ( PWRD), and Green Mountain Coffee Roasters ( GMCR). International Large-Caps: China Life ( LFC), AmBev ( ABV) and Wipro ( WIT) trading at 52-week highs. Red Hat ( RHT): Stock is up 8% on news it will replace CIT Group in the S&P 500.
Earnings Losers: Weatherford ( WFT) is down big after reporting this morning. Analyst Downgrades: Sanderson Farms ( SAFM), Tyson Foods ( TSN), BJ Services ( BJS) and Bank of America ( BAC) are all feeling the most pain following analyst moves. Ultrashort Plays: I see no reason to take a shot at ProShares UltraShort Financials ( SKF) or Real Estate ( SRS) here. I'm keeping them on the radar, however, as the market continues to move closer to "overbought" territory.
What's the Trade?
I like that the market is seeing a wider scale of winners. That said, I understand we have made a nice move recently and earnings are still leaning toward "not as bad as we expected." I would keep any momentum longs on a short leash. The names mentioned above would be areas that I would steer toward as far as trading ideas. Always use sell-stops! Be sure to visit our complete recommended list of the Best Dividend Stocks as well as a detailed explanation of our ratings system.