Solid Earnings Help Market Direction

Includes: CVS, HAS, HD
by: Wall Street Strategies

The market is grappling for direction but has climbed off the canvass in part to very solid earnings from the likes of Hasbro (NASDAQ:HAS) and Consumer Value Stores (NYSE:CVS), and an upgrade of Home Depot (NYSE:HD) over at Morgan Stanley. There seems to be a natural inclination at this point for the market to move lower as it seeks out buyers that have become more reluctant to buy the dips. On that note, however, buyers have begun to sniff around tech and commodities over the last week or so. There was big money made in those areas last year and recent pullbacks must conjure up great memories.

I like the action in the market; it has to get cheap and has to shake out non-believers to establish the base for a move higher. On that note, Chinese stocks look and act great. I think that bubble story is overdone; although I will say there is a real estate situation there that has to be addressed, I don't think it's the linchpin to the country's overall economic success. Let's see if there is a late move that might spark some panic buying, which we got a glimpse of late Friday afternoon. Of course it's tough getting overall traction without the financials, but speculation about the next attack on the industry seems to have cast yet another dark shadow.

Disclosure: None