Thursday, July 23, 2009

Looks Like A Sell-The-News Reaction May Be Coming Tomorrow....

After the run we have had, I don't think there were too many folks looking for so much strength today, but some good earnings report and lots of badly positioned investors combined to give us a very sharp whoosh upward. There was a lot of celebration, and it felt a bit like early 2000, except for the struggling economy part.

After the close, earnings reports are not nearly as positive. Maybe we are finally seeing a sell-the-news reaction after the big runup we have had. MSFT, AAPL, AXP, AMZN, RVBD, DECK and several others are seeing very poor reactions. We have now reversed about half of today's gains, which goes to show that maybe we have gotten a bit frothy and frantic.

I'll be starting fresh in the morning and will be looking for new opportunities - especially if the AMZN selloff is very severe. I'll probably add to my calls on AMZN if the selloff seems too much. The great thing about the market is that if you don't like the action today, you just have to wait a little bit and it will change.....

long AAPL; AMZN

Hav

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