Fly on WallStreet

It's a perfect world. Everything is working.

The market is at new high's because the economy is doing great. Coupled with lower oil/gas prices, many anticipate the consumer to hit a grand slam, even though there are only two runners on base.

Frankly, this run is likely to continue, until we get bad data-- that points to extreme weakness in the economy. If we do not get that rally killing news item, there is no reason why the DOW cannot go to 12,000 and the Naz to 2,400.

The reason why I have been so skeptical is due to the countless failed rallies over the last 5 years, with the exception of 2003.

But, the great run of 2003 was different. We were coming out of a "recession" and on the road to recovery. Now, we are in a slowing environment where stocks usually have trouble meeting earnings expectations.

Bottom line: Despite all the rosy talk, the 3rd quarter earnings and guidance will be the deciding factor for the direction of stocks in 2006.

Today's gains were led by the Metals, Trannies, and Oil stocks.

UPDATE: JBL BEAT EXPECTATIONS

UPDATE II: RHAT IN LINE; STOCK DOWN

UPDATE III: DBRN BEAT EXPECTATIONS; GUIDANCE RANGE LOWERED

UPDATE IV: PAYX BEAT EXPECTATIONS; LIGHT ON REV'S.

UPDATE: V: BE WARNED.

The following stocks had notable upside moves:

ISE, LAB, FACT, ITG, LEND, CORS, DIT, TSN, TARR, CHCI, SPF, MTH, HOV, GVA, TOA, AXR, CHB, MTRX, FZN, STST, HAN, DE, RMIX, FDX, TEX, BHP, BBI, XOHO, QLTY, CSX, EAGL, PWX, FDX, OSG, PACR, YRCW, LSTR, LVS, URRE, BQI, JOYG, NGAS, BUCY, SUN, PKD, NXY, STKL, WRES, SU, USEG, HOC, TSO, ANR, ECA, BRY, MRO, CFK, EP, IFNY, UPL, GEOI, VLO, PCZ, OMNI, BEXP, FSYS, CWEI, SWN, GMRK, GSX, WEL, OII, CAM, MWP, DRQ, MPET, SFY, GMR, AVR, ARTW, KFX, BRNC, ERF, CNQ, BDCO, ERS, TIE, ATI, STLD, NTO, NUE, X, PCU, RTI, FCX, BOOM, PD, SATC, BMD, WNR, FTO, ALJ, PQ, MIND, TARO, AVNR, GTOP, ALKS, YMI, NTMD, NSTK, CEPH, SIGA, BCRX, CRXL, VICL, GNBT, NENG, EBAY, WSSI, MFE, DIS, INTC, SIFY, GG, ABX, VGZ, KGC, SA, ITRA, WBMD, ECLG, BNSO, ATCO, ANTP, FNSR, TUTS, FTGX, TKO, FFIV, SMDI, NAYN, EXTR, TRBM, RBAK, RACK, FDRY, DBRN, CROX, BKRS, SHRP, BID, FORD, ESST, DGIT, OPWV, ATVI, ININ, ATAR, RNOW, NWRE, IBIS, COHU, TSRA, OVEN, MVIS, PAY, IVAC, ORA, LCRD, DISK, CLEC, TNE, TBH, BTM, TAR, MDLK, JCOM, MSEX, ELE, ENI, EOC, SBS, NYX, MR, LUNA, LOOP, NSTR, DXPE, ACOR, ANOR, EPCT, FNET, CECO, NAPS, SHRP, CCUR, CDY, CLG, MNG, EZM, KRY, RS, LEA, SPN, RGR, JLG and BPT.

The following stocks had notable downside moves:

PJC, JJSF, SAM, MFW, DENN, EXP, INTG, PHHM, WLT, BMHC, MDV, KOSP, SUF, DSTI, KOOL, NMTI, TRCA, CPHD, MO, ELOY, DIET, ARTG, WGAT, SRVY, WEBX, LQDT, INCX, CNTF, CTDC, JRJC, CAAS, APAT, CIEN, SONS, INPH, MIKR, ONT, SRR, CACH, NDN, OLED, LPL, CRYP, ADSK, PER, BEAS, AEHR, VECO, IMOS, AMKR, TUNE, EGLS, AMD, PMCS, MFLX, PLXT, IMX, AIXG, DTLK, HTCH, CHL, PGWC, WCRX, MWA, TRGT, EGLT, MXWL, MERX, CYTR, TTMI, AVID, INVX, LCUT, PME, HA, GRS, EYE, BFT, PNR, JTX, HET, WLT and NRG.