Nasdaq leads but..........

Can we have more days like this. Isn't it fun watching market gyrate from one end to another. The morning was weak. The rate at which oil is dropping it might go to single digit soon. Commodities joined the the slide. Gold stocks which often find bid at such junction are down.Retail is reluctant and selective participant. The S&P, the Dow, the small caps , and the NYSE are reluctant participants in the rally.But at the end of the day we were up decently on Nasdaq.

Now you can interpret the action two ways. A sharp drop in oil and commodities is signalling sharp slowdown or we have conquered inflation and the Fed has managed to give knockout blow to the excessive speculation in these commodities. I expect both these sectors to stabilise at these levels before further move becomes apparent.

The mix picture in more muddled when you look at what is being bought. The Dogs of the Dow, that strategy did well last year, so many are chasing it this year. The large cap technology stocks, they have been lagging so far. The large cap biotechs, the small caps in this sector were beating large cap till now. Transport stocks, here the airlines are leaders and for number of reason, the truckers have found some bid. The transports are always good buys on weakness. I like the airfreight sector in that group.

So all in all mixed picture. But don't worry, there are enough buy opportunities for the nimble. The earning season has started and few stocks yesterday had clear earnings lead breakouts. I will have a detail post this weekend on how to play the earnings with detailed examples and also charts.

Now when in doubt always look in to Wall Street's favorite sector, the restaurants. You might find some opportunities there. My final list of stocks worth looking at includes some earnings play and some momentum play and one restaurant play.

ABFS,Arkansas Best Corp (Google  Yahoo  Earnings BW  Chart) 
ANGO,Angiodynamics (Google  Yahoo  Earnings BW  Chart) 
ARO,Aeropostale Inc (Google  Yahoo  Earnings BW  Chart) 
FFIV,F5 Networks Inc (Google  Yahoo  Earnings BW  Chart) 
GSOL,Global Sources Ltd. (Google  Yahoo  Earnings BW  Chart) 
MEMY,Memory Pharmaceuticals (Google  Yahoo  Earnings BW  Chart) 
MVIS,Microvision Inc (Google  Yahoo  Earnings BW  Chart) 
NTGR,Netgear (Google  Yahoo  Earnings BW  Chart) 
NWK,Network Equipment Tech (Google  Yahoo  Earnings BW  Chart) 
NWY,New York & Company Inc (Google  Yahoo  Earnings BW  Chart) 
RIMM,Research In Motion Ltd (Google  Yahoo  Earnings BW  Chart) 
ROCM,Rochester Medical Corp (Google  Yahoo  Earnings BW  Chart) 
RUTH,Ruth's Chris Steak House Inc (Google  Yahoo  Earnings BW  Chart) 
VDSI,Vasco Data Security Intl (Google  Yahoo  Earnings BW  Chart) 
WITS,Witness Systems Inc (Google  Yahoo  Earnings BW  Chart)