Glass-Half-Full Action

 | Aug 20, 2014 | 12:20 PM EDT
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Nice glass-half-full action.

Target (TGT) takes guidance down big, and then reveals that July was good and that strength is continuing into the month that's not included into today's numbers -- August.

Lowe's (LOW) cuts its forecast and it isn't even down, even as it went up huge on Home Depot's (HD) quarter. And Home Depot is up nicely again, even as the easy money has most surely been made.

Meanwhile, the end-of-aerospace-cyclists have gone silent as General Electric (GE) decides to commit $3.5 billion into aircraft engines over the next five years. If the cycle is over, why make that commitment? GE could put its money anywhere it wants to.

So, another segment that had been crushed, retail, springs back to life -- so far without any analyst support, but many analysts like to be on winning horses so I expect to see some push for the group tomorrow.

Finally, there's the short-busting that continues in this tape. Yesterday, Home Depot and TJX (TJX) spoiled a couple of shorts that looked good after Macy's (M) and Nordstrom (JWN) disappointed. Then, bingo, you catch a 5% and an 8% rally.

Monster Beverage (MNST) had become a highlighted short name with several analysts predicting shortfalls. Nope. Coca-Cola (KO) buys a stake and it soars 18 points.

Now it's Hain Celestial's (HAIN) turn. The shorts had pressed and pressed the bet, but the company reported a terrific quarter with a huge guide-up, sending the stock to the moon.

Glass-half-full action coupled with the return of buyers to aerospace and some short busting events have combined to create a benign landscape, even as we are overbought and have plenty of Fed-speak ahead.

If you ask me, that's the definition of resilience.

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volatility is quite low here, and we could see some downsides here in the short term. ...



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