Monday Morning Musings

Good Monday morning. Hope everyone had a nice holiday weekend. I was out of town for my kids' spring break, so still shaking off the cobwebs a bit. But market action towards the end of last week was very solid, and there were lots of strong earnings report.

Of course, I was particularly pleased to see the action in Apple (AAPL). The company trounced earnings estimates, and the stock reacted nicely. I still think AAPL has considerable upside left. I was also very surprised by the action in FFIV/VMW. I did not expect them to report such strong numbers.

The newsflow today has been light. Asian markets were mostly lower overnight, led by China, with Hong Kong closed for holiday. All of Europe's markets remain closed for holiday observance today.

The dollar is roughly flat. Oil prices are lower to $111.25, but gold prices are still a bit higher near $1504. Barrick Gold (ABX) is lower today after reporting an acquisition in the copper industry, leading some to ask "if ABX is looking to buy copper assets, does that mean they see a peak in gold prices?"

The 10-year yield is a little lower, still hovering near the 3.36% level. And the VIX is bouncing back +8% today to 15.96, after hitting multi-year lows last Wed. and Thurs.

Trading comment: The market showed strong price/volume action last week, and more leaders are breaking out after reporting earnings. As you know, my mantra is to stick with those leaders as opposed to trying to bottom fish with companies that have disappointed. We are still in the thick of earnings season, so be careful buying ahead of company reports. Wireless networking stocks look strong (APKT, ARUN, MERU), with APKT reporting earnings tomorrow.

long AAPL, APKT, MERU