At last, we have one of those days when we come in and people say, "We have to sell because..." And the "because" isn't answered with an U.S. situation, such as tapering or earnings, or a fight between the House and the president. Today it's all about whether Japan is in trouble.
I am adamant that Japan isn't in trouble but that the market there has become unstable in its volatility, and it does freak people out. I come back to the high quality of earnings we have seen all week and a belief that we can't throw out the baby with the Japanese bathwater.
Just think last night and this morning about the ratio. We had a bad number from Expedia (EXPE) that is hurting the travel stocks, but if you go over the quarter and the conference call, you would think that that's the wrong takeaway and that the other travel names should be bought. In the meantime, you have terrific numbers from Starbucks (SBUX) and Gilead (GILD) last night after the close -- two huge-cap stocks -- and then good numbers from Weyerhaeuser (WY) and Stanley Black & Decker (SWK) this morning, both of which could have tripped us up and didn't. Don't forget that Amazon (AMZN) reported a quarter that was widely viewed as disappointing, and it didn't take the Internet cohort down. In fact, it has barely kept down Amazon itself.
I think today just feels like a bit of a hangover and nothing more, not the start of something big.
And, oh yes, we are a buyer of Japan for the Action Alerts PLUS charitable trust, as the situation there is going negative to positive and not back to negative again.