The selloff this morning is being somewhat contained, but it does appear that the market's recent winning ways will end with today's session. Let's take a look at where traders should be focused as we roll through the afternoon hours.
Biggest Percentage Earnings Winners: Capital One Financial ( COF), Chubb ( CB), Eastman Chemical ( EMN), SunPower ( SPWRA), CA ( CA), Baidu ( BIDU), Black & Decker ( BDK) and Ingersoll-Rand ( IR) are outperforming all of the other earnings plays. Other Notable Names Doing Well in a Down Market: Google ( GOOG), IBM ( IBM), MasterCard ( MA) and Continental Airlines ( CAL).
Biggest Percentage Earnings Losers: Microsoft ( MSFT), Bucyrus ( BUCY), Broadcom ( BRCM), Netflix ( NFLX), Amazon ( AMZN), Syngenta ( SYT), and Ashland ( ASH) are leading the markets lower. Other Notable Names Trading Lower: Union Pacific ( UNP), Morgan Stanley ( MS) and Wells Fargo ( WFC) are looking weak at this point.
What's the Trade?
Outside of any big moves in the markets this afternoon, the best plan now is to keep your sell-stops firmly in place on any long stocks that you may have bought recently. The market has had a big run and it is silly not to consider ringing the register on some of those winning holdings. Putting sell-stop orders in place helps you maintain the proper discipline to avoid watching profits vanish. As for the UltraShort plays, I'm not too thrilled about getting into a long position there. As for U.S. Steel ( X), Agnico-Eagle Mines ( AEM) and especially Baidu ( BIDU), there is no need to force a short position in any of them based on how the stocks are acting right now. Be sure to visit our complete recommended list of the Best Dividend Stocks as well as a detailed explanation of our ratings system.