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I'm afraid to blow it again. Twice I've called the end of this rally or at least a pullback and was dead wrong both times. But.

We see different reaction to the news now. Last quarter earnings were met with a "buy, buy, buy" reaction, whether earnings were good or, more often, not so good. Now, earnings are improving and I can actually see real growth in some reports, but every company gets killed. With the exception of Google (NASDAQ:GOOG), which reported an outstanding quarter. I'm going to write more about Google later. But the fact that very good earnings from Intel (NASDAQ:INTC), IBM (NYSE:IBM) and Goldman Sachs (NYSE:GS) were met with sell-offs is telling.

Another point: Sentiment is becoming more bullish now. If I understood Todd Harrison's last missive right, he's not bearish anymore. That's telling. Would be even better to see Doug Kass bullish, but I don't think so.

I thought that rally in July-September was a buying panic. I still think so. Looks like the panic is over and window dressing finished in September. We are due for a pullback. How big is it going to be? Nobody knows.

Short term, I'm tempted to play earnings. I know it's a sucker's game, but the temptation is too big. Medium term, I'm waiting for a 10% pullback. Because I'm bullish long term (defined as 18 months in my case), I'm buying such pullback and buying even more if the pullback goes deeper. And of course, I want to take some profits.

Right now, I want to buy Intel. Jim Cramer is absolutely right: any company running 63% margin is a buy. Apple (NASDAQ:AAPL) is tempting for a trade.

Full disclosure: at the time of publication author had a long position in GOOG and no positions in other stocks mentioned. Positions can change any time.

Source: Now We're Really Due for a Pullback