Mixed Start for Stocks
The market is mixed in early trading. But yesterday was a very solid accumulation day, on the heels of Monday's upside reversal. You can see the rotation out of energy and material stocks into more traditional growth areas (tech, retail, healthcare).
Energy stocks are getting a bounce today, but I think that is a given since they have been sold off so hard lately. I used yesterday's early strenght to further reduce our exposure to the group.
I also added to Google (GOOG) yesterday, as the stock looks to be pulling away from its 50-day. Cramer is back on the GOOG bandwagon (nice to have you back, buddy), saying it could hit $500. That may have helped boost the stock this morning, as it is challenging the $400 level.
In other news and notes:
- ENER is up ~15% after beating earnings by 12 cents
- GLW: Thomas Weisel is positive on the LCD supply chain environment
- AAPL: Lots of updgrades following the company's unveiling of iTV
- OXPS: positive DART data for August
- LEH: beats earnings by 8 cents; stock higher
With literally everyone looking for a September pullback, it would be in character for the market to merely offer a 3-day pullback before resuming its rally. My colleague at TheStreet.com, Jeff Cooper, had a great quote yesterday from legendary trader Jesse Livermore:
"The diabolical purpose of the market is to continue higher with as few people on board as possible."
long AAPL, ENER, GOOG, OXPS