D&D Note (4-26-2012)
Sugar fix, the markets are addicted and will rally (like today) on just the thought it could still happen again (i.e. more quantitative easing or commonly called QE). The US GDP Q1 estimate will be released tomorrow and depending on how well or how bad that number comes in will greatly determine the future direction of FED policy.
If we see a bad number coupled with more bad unemployment reports we will likely see some sort of extension or sterilization of the current operation twist or an out right QE3 come the end of June.
Rallies like the one today are good opportunities to eliminate positions in your portfolio that may cause you reason for concern come the following months if we see a further continuation of the market correction. The transport sector is one that we are weary about. Any companies that are heavily tied to Europe are also stocks to sell into the rallies.
And of course separating the wheat from the chaff – as in sell your underperforming stocks as they rise with the tide and companies which mind find it hard to beat earnings.
Its not always sell everything in May and go away. More so its what do you sell and what do you hold.
Highlighting this today is everyone’s favorite wall street term the “trannys” which is lingo for the transport sector. United Parcel Services (UPS) missed earnings estimates mainly due to Europe and was down on the day 1.8%.
Companies that did rally big today where Amazon (AMZN) that beat earnings after the bell and rose nearly 11% in after hours trading. Software maker Citrix Systems (CTXS) rose 12% after reporting that revenue rose 20% in the first quarter and raised guidance for 2012 sales.
Italy has a bond sale tomorrow and will be a big market driver depending on what yield they end up getting on the auction.
After the bell today Spain got downgraded to BBB+
Oil and Gold rose today, Oil rising 43 cents to $104.55 a barrel and Gold rose $18.20 to $1,660.50 an ounce.
D&D Investments 
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