Eaton (ETN) may not be a good long, but it gave you some pretty darned negative numbers in its preannouncement and it didn't go down, so let's say it is no longer a good short, either.
How can a $300 million shortfall take the stock up? Pretty easy. When you have a 4% yield and no one likes your stock, it can be a moment when you recognize and quantify the downside and find that the downside's a lot more limited than you thought.
Again, I do not want to say "buy Eaton." I do want to say they have thrown everything they can at this, and it won't go down.
It's a theme: Dover (DOV), which also has oil and gas issues -- what is really hurting Eaton -- was able to rise above them and rally big on the mixed quarter and lukewarm guidance. United Tech (UTX) is getting huge love on the fact that it isn't worse than expected.
Suddenly, people like that Honeywell (HON) quarter that they didn't like three days ago. Honeywell is a holding of the charity portfolio Action Alerts PLUS, which I co-manage.
The market's fickle, but when it turns, it turns positive.
That's pretty much the takeaway of these down-so-long-they-look-up-to-me stocks, at least until they get so high that they once again bring out sellers, or oil bottoms or is bottoming -- something all of these companies need to keep on trucking.