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After driving back and forth to Long Island for an late morning meeting, I took particular note of the number of sports cars doing donuts on the LIE - I mean didn't any of those folks every go to my hometown of Syracuse?! God forbid we actually got that kind of snowstorm.

Either way I came back to a number of questions regarding how the market should react to the after the bell mid-quarter update from tech bellwether Intel (INTC). The question gives me the opportunity to remember that a stock (or the market) trades on news based upon how it trades into the news. If it were a week ago, I would say it is a no-brainer that the reaction to whatever the company said would cause profit taking because it was up from 13 to 22 in a straight line.

Since last week the stock has pulled back to 19ish, with the rest of the market. That makes the any bets going into the update that much tougher to game (like it is ever easy!). Hmmmmm - up from 13, but down from 22. Here is the point - unless you have the ability to make a decision you can live with, there is no need to make a decision. Each day and every week brings new "key events" to trade or invest based on. How many of them over the past month do you readily recall?

For example, once the market reacts to INTC, it will anxiously await, and then get the monthly employment report. All of this of course is going to take place in after-hours trading. So for examples sake, let us say that you bought the market now expecting better than anticipated news from INTC. New comes out and it is terrific and the stock is indicated higher. Ahhhhhh, but then the employment report is worse than expected and all stocks get hit, including INTC.

The bottom line is that the market is mixed and is sending no clear message because it is still up big from October, but has corrected from last week -- so I would rather opt for not trying to tell it what to do, instead listening to what it says to do. Besides, I am sure there are going to be "key events" to trade off of next week.
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Long 4x4's on Long Island in snow and glad i wore my hat!
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