This 'Ol Stubborn Market

NASDAQ closed near the high of the day led by the Small Caps which put in a solid performance with the Russell up 1.2%. Semi's were flat which anchored the market to some degree. Overall breadth was very good on the NASDAQ and exceptional on the NYSE. Volume however was lighter than yesterday on the NASDAQ which is not what you would want to see with the averages up as much as they were today.

Key stocks:
AMZN continued to impress with excellent follow through. SBUX coming off of an excellent report, closed near the low end of the days range, which again demonstrates that the "sell the news mentality" is not dead.

Interestingly, some of the old horsemen such as MSFT, CSCO, & DELL underperformed noticeably. It seems that portfolio managers and traders are reaching for the secondary and tertiary names in lieu of the old reliables in order to play catchup. This is also indicative of a market that is in the late stages of a rally. Oil continued its stealth move to the upside and will become a problem as we challenge oil's high which is within a $2 reach.

After Hours:
Futures are essentially flat, however the market continues to reward or punish companies that post much better/worse than expected reports ie. WFMI +10.7%, SYNA -23% respectively. This type of action makes holding positions into earnings reports extremely risky.

If you held a Taser to our head: The market is showing blow-off characteristics in which prudent traders would make partial sales over the next few days. Adding fresh money buys at these levels carry a lot of risk unless they are story specific. We will stay with the trend but make partial sales into more strength.

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