By: Scott Redler
Yesterday was a day for the bulls, led by a stellar earnings report from JPM. The report was too good to sell like the market did last quarter. It is a good sign for the market that we are not selling good news. The market is becoming somewhat extended, but there is still some juice left to squeeze out. There could be another 300 points left in the DOW before we see some sort of correction.
The key to making money in this market is adopting a very sector specific strategy. The traders who have been able to post the biggest days are the ones who are staying flexible and trading where the action is. Don’t chase stocks that are through highs, rather move on to the next sector on the brink of a breakout.
Earnings season is in full swing now, and the next big names to report at GOOG, GE and BAC. Good reports are expected, but if we can continue to push higher into the announcements, it might be a good time to take some profits into the news.
On a long-term basis, your money is safe with AAPL and GOOG. These two hallmarks of American business have been beasts during this market rally. The stocks that can best withstand economic and political headwinds are those with strong brands, and AAPL and GOOG are near the top of that list. Even if GOOG’s report does not meet expectations, if you have a longer time horizon don’t get scared off. Over the long term, GOOG will be just fine.
