The action in the stock market today felt bearish with the afternoon reversal following the FOMC announcement. Yet stocks still look a little short-term oversold. Further complicating matters is Cisco Systems (CSCO) earnings report after the bell tonight. The company beat the estimate, beat on revenues, guided higher and raised their stock buy back program. All in all it was a very bullish report from CSCO and John Chambers shared positive comments on the recovery. This could easily fuel a rally in technology stocks on Thursday. Yet I suspect the market will just chop sideways in a volatile fashion until we see the October non-farm payrolls data due out Friday morning.
I am not adding new candidates to the newsletter at this time. However, I will offer a couple of trading ideas. The action in AIPC today looks bearish. The early morning rally quickly failed at $27.00 near its exponential 200-dma. This could be a new bearish entry point. I'd also keep an eye on ADSK. If technology stocks rally tomorrow then ADSK could out perform. The stock is trying to bounce from support near $25.00. This could be a bullish entry point on the stock.