Day 2 of the Bounce

Morning News of Note:

• DIS: Disney and the Great Wall Hong Kong's Magic Kingdom Struggles to Attract Chinese Who 'Don't Understand' Park Li Zeng, a fourteen-year-old Chinese tourist, wandered Hong Kong Disneyland yesterday -- and left after two hours. Mr. Li isn't that familiar with Mickey Mouse and his companions, and he and his father didn't take any rides, buy souvenirs, or eat food. "We don't understand this park," said the teenager, waiting for his tour bus. "We gave up looking at the map." (Full Story) WSJ
• GOOG: Google Updates Tool For Computer Users To Search Desktops Google Inc. plans to release an updated version of its software for searching the contents of a hard drive that will let consumers access information stored on other computers they use. For consumers who activate the new feature in the software, which is known as Google Desktop Search, the search company will temporarily store the text contents of the user's files on its own computers before transferring them to a second computer the consumer uses. (Full Story) WSJ
• Asia Economy: BoJ keeps interest rates at 0%; Gov Toshihiko Fukui said core CPI will show clear gains in Jan and after; said judgement of core CPI will become increasingly important at next policy meeting; Japanese Jan consumer confidence 49.5 vs 46.7 in Dec, highest since June90, index only been above 50 four times since 1982 // Bank of Korea raised interest rates 25bps to 4%
• Mad Money Summary: Cramer's battered stock of the day was Vitesse Semiconductor (VTSS), which he said was a great pin on the momentum of Cisco (CSCO). Cramer then advised a caller to stay away from Avnet (AVT), saying the margins in the distributor business are too low. Cramer then brought on Starbucks (SBUX) founder and chairman Howard Schulz, who said his company plans to open 30,000 stores worldwide, including 15,000 internationally, and that he feels the company is only "at the embryonic stages of our international expansion." Cramer then discussed genetically modified foods, which he feels will make money for Syngenta (SYT) and Monsanto (MON), although he said not to buy Monsanto before its earnings release today. In the lightning round, Cramer was bullish on HANS, BKHM, BCRX, CB, UPL, MU, UNH, BTU, ECA, TLM, WYE and VRSN, and was bearish on AVP, ISLE, EXC, REDF, OMN, GST and AZN.

Market Comments: The market is getting a strong bounce at the open. BBY reported strong earnings, which is helping tech stocks also. The SPX has broken above its overhead 50-day moving average, and is closing in on the 1275-level.

I would expect this area to offer some resistance on this attempt, and for the market to consolidate further. Volume was strong on yesterday's rally, which is a good sign. But the number of stocks making new highs has shrunk.

While today could very well be another up day for the market, I am holding off for a bit before making new buys.