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Earnings Season Continues as Stocks Advance in Lighter Trade

|Includes: AAPL, AMZN, BIDU, CMG, CREE, Alphabet Inc. (GOOG), GS, ISRG, PCLN

Just another day of decent price action and although volume failed to surpass Monday's level all in all it was a decent day.  Leading stocks were able to take the lead today, but they too lacked the volume support we like to see with rising prices.  Although it is a blemish on the market we often, in this market see volume come in a day or two later to support the higher prices.  The uptrend in place is intact and continues.

Apple Computer posted record profits and vaulted in after-hours trading.  This technology leaders has certainly been a big winner for this market and is a leading stock.  The record quarter profits should invite heavy trading volume and should be watched as it is a key market leader.  The big question will be if the stock can sustain all the trading volume as traders rush into the stock tomorrow morning.

It would have been nice to see volume surge into the market today as it recovers from the Goldman Sachs (NYSE:GS) fever the market caught last Friday.  Even Goldman's earnings report couldn't excite the market enough to move the stock higher.  With the Securities and Exchange Commission along with President Obama's financial reform looming the pressure will continue on this stock.  But, it highlights the weakness that has begun to show its face whereby former leaders are beginning to crack.

We do not have enough leaders at this point failing to have us getting real worried about a market top here.  However, a day of stalling coupled with leaders taking a big hit will certainly catch our attention and get us defensive.  While leading stocks did enjoy a nice run today, the lack of volume suggests institutions weren't so sure they should be stepping into the market.  Without the big volume it'll be necessary for us to remain in the defensive position.  The old saying of "defense wins championships" rings true with being a market operator.

A few leading stocks did breakout of fresh bases today on volume, but the lack of volume elsewhere still gives us pause.  In normal markets leaders will move in tandem and this includes volume.  However, we are experiencing a market that has gone against most norms and you can see it as many market pundits continue to hate this market.  This only proves, and it is something we preach opinions do not matter to this market and it will move as it pleases.

Pay close attention to market leaders as they will lay out what is at stake in this market.  Any stalling mixed with weakening leadership will certainly raise a few flags, but in the meantime this uptrend remains intact and we continue to ride it.  Stay disciplined.

Disclosure: No Positions