Setting Up For Disappointment

You know that I always caution about a market that opens up a lot and can't sustain that momentum into the close. That is exactly how we are setting up today. Strong earnings from IBM, INTC, etc. have bolstered enthusiasm.

The market got a huge boost at the open. The Dow quickly rose more than +100 points to cross the psychological 12,000 mark. That got everyone excited as CNBC started flashing it as "breaking news" and bringing out the bulls.

But you can already sense the market fading from this early euphoria. The NDX quickly gave up all its early gains, and the SPX is fading as well. I hope the market doesn't close down today, but I would not be shocked to see it.

The CPI came in at +0.2%, which is a good sign for inflation, and a sigh of relief given yesterday's PPI figure. Bond yields are down slightly on the news, with the 10-year at 4.76%. Oil is also slightly lower, along with the energy stocks.

In other news and notes:

• Did you hear about Steve Wynn's Picasso?
• ILMN gaps higher after beating earnings
• YHOO lowers rev guidance for Q4 and FY
• Options scandal claims execs at SAPE
• LUFK lowers guidance; stock lower
• APOL misses EPS; stock down -18%
• TEVA CEO Makov to step down
• USNA down after earnings
• MOT also down after earnings

long INTC