The Memory-Free Market

 | May 02, 2013 | 3:33 PM EDT  | Comments
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We just seem to forget. We forget why 3M (MMM) went down. What was that? What happened? I forget.

Or how about that ConocoPhillips (COP)? Didn't they report a miserable quarter? Or certainly one that showed little growth? Wasn't VF Corp. (VFC) a major miss with major handwringing? Didn't Toll Brothers (TOL) disappoint?

I think this remarkable market cannot recall what went wrong. It seems to forget it so quickly that it's childlike. It forgets its homework constantly. Plus, there were so many negative analysts who downgraded ahead of quarter, which then turned out to be not that bad -- think Microsoft (MSFT) -- that we see scrambling constantly as the macro worries diminished and whatever specifically bothered us has just been rendered irrelevant.

So what's next for revaluation? There was some worry about United Technologies (UTX) and General Electric (GE) citing Europe, but if you are like me, you think Europe is turning. How about some of these food stocks? Hershey (HSY) reported an amazing quarter, and it is still trying to shake off the selling. People didn't like the FedEx (FDX) quarter, but how long can that negative stay with this comeback stock?

And of course, there is ADT (ADT), which we own for Action Alerts PLUS. Here's a company that basically delivered what it was supposed to do and fell almost 10% for doing so, and it had already lost 5 straight points coming into the quarter.

Preposterous, especially because it is a housing play.

I will find out tonight if Allergan (AGN) can bounce when I talk to the CEO, David Pyott, but I think the 13% decline was in excess, not unlike the plunge in IBM (IBM) from $212 to $188.

The market doesn't like a quarter? Give it a few days, and all will be forgiven. 

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