Thursday, October 12, 2006

Earnings Fuel Buying Frenzy

The Market comes off the leash as a slew of Blue Chip earnings energize Wall Street. Some short covering is undoubtedly involved as money pours into the market. Although volume is not unusual it’s a strong broad market rally; even for European markets. Technology-laden NASDAQ surges 1.6%. I think the stage is set for some profit taking tomorrow.

On the strength of impressive runs by COST, EEM, EFA, and MSFT, the folio makes its single biggest day gain yet. COST swings for the fences with a stellar 7.7% advance. During a bullish conference call with analysts it offers cautious guidance for Q1 2007 and fiscal 2007 that is in line with forecasts. This is just what the doctor ordered for COST. Recently, it’s been in the doghouse as investors sought direction from management.

I can’t fail to notice that Adobe Systems (ADBE), which I’m eyeing for the folio, gains almost 3%. As always, this is a double-edged sword because I may have to pay more for it.

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