For the second day in a row the indices moved steadily up with barely a downtick. Volume slowed and the price action wasn't as energetic but there were some big moves once again like WHR, FDX and MA - these could be telling.
IBM and GOOG ran up strongly in front of their earnings reports. IBM numbers came in very strong and it is trading up further on the news but Google was just a little ahead and is trading down fairly sharply. We have BAC and GE in the morning, so that should give us some additional volatility as well.
This market has been remarkable in how little it has pulled back all week. I see many stocks up four to five days in a row on light volume, but they just keep on going as calls for the end of our economic demise grow louder each day this week.
On a day like today, when an overbought market goes even higher on lighter volume in front of major earnings reports, if I'm a buyer then I'm picky. Make sure you have an edge. That doesn't mean we won't have another two or three days up, but the odds of further upside at this point are diminishing - maybe.
At least with these earnings reports and varying reactions from IBM and Google some out there should have some better volatility to play with.
long BAC
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