The Wrap 7/14/10

{+++}Big day tomorrow, big day Friday, big week next week. JPM reports in the morning and we have GOOG reporting tomorrow after the close.

Intel was a textbook case of sell the news today. They had their best quarter in history and the stock managed a paltry gain of .35 measly pennies. Interesting tell there perhaps, still early though in the game. It was the second day in a row that the S&P got turned away at 1100, a move through that level could get us a run to 1120 as a first stop.

China GDP will be released tonight and unless they fail miserably it will probably be bullish for our market tomorrow, as long as JPM doesn’t implode on their earnings report.

Interesting that AA and CSX have done nothing price wise since their decent reports. Is the market tired and trying to send us a signal or is it just resting and waiting to get past the bank earnings? We wont have these answers for days most likely.

We took profits in APKT and STEC (all out), and a partial (1/2) on LLEN

Strategy for next 3 weeks:

It may serve you very well to trade light until this earnings season is over. If your a 1000 share buyer, maybe trade 300-400 shares. Don’t try to be a hero as this is a very important period for the market and this next few weeks should tell us a lot about where we are heading the next six months. In my view, the period after earnings will be the time to really place your bet. I feel this way not only on a swing trading basis , but it’s also how I view short term day trades, smaller size. This market is a chop fest and volume is horrible. You want to be able to be able to play when things get more predictable. Many folks are just paying their broker commissions in this market. So lets definitely play it with all the excitement that we bring to the market, just watch your size. I have reduced size dramatically for myself and my fund as I want to keep my powder dry for a predictable directional move (which I promise you is coming), whether it be long or short. Don’t get me wrong, I’m trading everyday, I’m just keeping size a bit smaller.

No names tonight as I want to see how the market plays JPM in the morning. Hope you guys had a great day.

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