Although the indices are showing green, market action continues to look quite poor. The opening gap up was sold again, and the market has been trending downward through the first hour of trading. Among the stocks that had gapped up on earnings, quite a few of the stocks have now reversed hard. SolarWinds (SWI) and PulteGroup (PHM) are good examples of how the early chasers were burned again.
The action in Apple (AAPL) is particularly interesting. So far there is no anticipatory buying, although it is obvious that expectations are low. The sentiment has shifted completely -- no longer does the stock act like it can do no wrong. Apple has consistently beat expectations, and it is going to be interesting to see how that plays out. If the pattern of the quarter holds, the stock will gap up on its earnings report tomorrow and then sell off.
Precious metals are one group of interest on my screens this morning. Silver stocks were hit in the last couple days, but the charts in the mining group are the best I see. Coeur d'Alene Mines (CDE), First Majestic Silver (AG), Pan American Silver (PAAS) and Primero Mining (PPP) all are holding well and in good position to break out if silver perks up.
As for gold miners my favorite is Las Vegas Sands (SAND) which had a great run in September and has no find some support and is consolidating. AuRico Gold (AUQ), Iamgold (IAG) and Agnico-Eagle Mines (AEM) are a few other interesting stocks in the group.
The market is still trading down from the opening gap and once again I'm mostly just staying out of the way.