More Of The Same

The action wasn't as manic as yesterday, but the bulls managed yet another positive day.

Volume was quite heavy once again, but breadth was mixed. The semiconductors did manage some follow-through, but it was mostly a one-man show, with INTC displaying the kind of momentum it seldom sees after an earnings report. Oil and gold led, while steel and biotechs faltered. Overall, there weren't many strong themes in play.

All eyes are on the next batch of earnings reports, and GOOG was fine, but the stock's not looking too hot. They posted slightly better-than-expected numbers. It isn't enough of a beat, especially with the stock trading up strongly into the news. The stock is down about $20, as I write, but the momentum money has quickly moved into ISRG, which is up around $10, following its report. ISRG has run up far more than Google into its report, but it is a better beat and a thinner stock, which are holding it up so far.

We continue to have all sorts of overbought indicators hitting new highs. So far, they are no match for the momentum of this market. The air is awfully thin up here, and conditions for a flurry of profit-taking are building, but we have yet to see any cracks in the uptrend.

We'll see how Google looks in the morning, when we also have GE and BAC reporting in the morning, so there exists some potential catalysts for profit-taking. However, I don't expect any sustained downside move at this point, because the dip-buyers have been so successful. They will be quick to jump in on the first bout of weakness, so don't be in a hurry to embrace the dark side.....