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Positive Reaction to Earnings This Season

Through today, the average stock that has reported this season (roughly 1,700 companies) has averaged a one-day gain of 0.77% on its report day.  (For companies that report after the close, we use the next day's change.)  Below is a chart showing this average report-day performance for stocks during each earnings season over the last ten years.  The average one-day performance for all quarters going back ten years has been +0.12%, so this season's 0.77% gain has been very strong compared to the average.

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Looking For Action? S&P 1500 Most Volatile Stocks

For traders with a short-term time horizon who are looking for big moves over a short period, we have updated our list of the S&P 1500 stocks trading above $10 that have the largest intraday high-low ranges (based on the average percent spread between the intraday high and low over the last 50 days). We then grouped the stocks based on whether they have a rising or falling 50-day moving average (DMA).  Stocks highlighted in gray are new to the list this month.

May 6th Blogger Sentiment Poll

Blogger Sentiment Poll Participants: 24/7 Wall St (-) The Aleph Blog (-) Biiwii BullBear Trading (+) Carl Futia (-) Dash of Insight (+) Dividend Growth Investor (+) Elliot Wave Lives On (+) Expected Returns Fallond Stock Picks (+) Global Economic...

Huge Jump in Bullish Sentiment

Heading into last week, we saw the second lowest bullish reading in our weekly market poll since we began conducting it in early 2012 (38% bullish to 62% bearish).  This week we've seen a complete reversal, with bullish sentiment now outnumbering bearish sentiment by 10 points (55% to 45%).  This upside reversal in the bull/bear spread of 34 percentage points is the highest bullish reversal that we've seen to date.  Looks like investors are finally starting to buy into this market.  The only question now is whether or not it's too late.

This Pattern Suggests We Could See More Upside In The Next Few Days

Short-term strength is often followed by short-term weakness, but when that short-term strength is unusually impressive, it can create a situation where that extreme strength will beget more strength. When the market leaves an unfilled up gap that is considered a sign of strength.  When it does it 2 days in a row and closes at a 50-day high, that can be considered exceptional strength. That is what happened on Friday, and it triggered the study below, which I last shared on the blog on 9/10/12.  All stats are updated to present day.

"We're selling everything that's not nailed down"

Barron's, That is, the private-equity giant is a net seller because things simply can't get much better. "We think it's a fabulous environment to be selling," he says, noting Apollo has sold about $13 billion in assets in the past 15 months. "We're selling everything that's not nailed down. And if we're not selling, we're refinancing."

WSJ: "The Man at the Center of Solar-Panel Maker Suntech's Fall" ($STP)

An excellent article in today's WSJ, "The Man at the Center of Solar-Panel Maker Suntech's Fall", Through what analysts and regulators describe as a complicated set of transactions, Mr. Shi helped finance an investment vehicle known as Global Solar Fund that created demand for his solar panels. The venture, he and other Suntech officials later said in a lawsuit over suspected fraud in the fund, was deliberately structured to keep hefty debts off Suntech's books.

S&P 500 Higher or Lower From Here?

The S&P 500 closed out the week on an extremely positive note by making a new all-time high and crossing above the 1,600 level for the first time ever.  So where do we go from here?  Please take part in our weekly market poll below by answering whether you think the S&P 500 will be higher or lower one month from now.  We'll report back with the results on Monday before the open.  Thanks for participating and have a great weekend!  If you have yet to visit our newly improved research website, definitely do so over the weekend.

DJIA 1,000-Point Thresholds

The DJIA crossed above 15,000 for the first time ever today, but it has since fallen back below that level in afternoon trading.  Whether or not the index will finish the day above that key threshold is unknown, but as of today it has been 2,115 days since the DJIA last crossed and closed above a thousand-point threshold for the first time.

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