Today's a wildly inconsistent day.
We are getting traction in the price of oil, yet the biggest offshore driller, Transocean (RIG), is down huge. Why? RIG bought stock back high and it is offering it low.
We have the disc drives, integral to PCs, higher yet Corning (GLW) lower, even though its glass also goes into PCs. Why? A Thai flood hurt production for Western Digital (WDC) more than Seagate (STX), allowing Seagate to raise prices and get some margin. Meanwhile, Corning just missed so badly. A month ago I had CFO Jim Flaws on the show, and he said things were going great guns. Wow, what a turnaround in such a short time.
We have the luxury goods area, the star of yesterday's session, getting rocked because of Tiffany's (TIF) take-your-breath-away guidance, indicating the most important quarter -- the Christmas quarter -- is going to be weak.
We have health care up, the drugs doing better and the cyclicals rallying too. Those tend not to go up at once.
I believe the shorts fear anything positive out of Europe and are afraid to give back all their gains from last Tuesday, while the longs think that Europe just doesn't matter.
I agree with the idea that it just doesn't matter ... for a very small group of totally domestic stocks like Cedar Fair (FUN), Kinder Morgan Partners (KMP), Markwest (MWE) and a Home Depot (HD) or a Dollar Tree (DLTR). They are going to drop on any news of a collapse in Europe -- which I am expecting, or I wouldn't have gone DEFCON 3 last night -- but they will drop less because, indeed, it is "them," not "us." But I am using credit as my key. If a company needs credit -- and many of the domestics, the health cares and some of the food and beverage stocks don't -- it can't be owned. Not even for a trade.
If something actually good happens to those who need credit, you will make enough in the conservative plays to be rewarded.