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Good Friday to you. Hope you've had a nice productive week. We've been pretty productive for you revealing what we believe to be a few attractive longer-term investing ideas (CRAY and Sprint) over the last couple of days, a suggested playable rally (late last week) and a nice profit taking call and/or short entry play in yesterday's edition on the heels of what has turned out to be a pretty bullish week for traders and investors.

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Howdy everyone. Are you enjoying back to back (to back) gains from Tuesday, Wednesday, and today? Great - enjoy 'em while they last, because I've got a feeling today's strength is close to the end of the bullish line for a few days. Don't sweat it too much though, because I doubt any pullback is going to last any longer than the three-day rally has.

Yeah, welcome to summer, when the market can't decide what it wants, and the best trades are made by zigging when everyone else has zagged.

We'll take a detailed look at a chart for you in a second, but first I want to tell you we've got another trading idea for you today, plus a review of what Q2's earnings are apt to look like at the sector level. You might be shocked at which groups are poised to do well.

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Yep, I've got the usual technical read for you today, but at this point I think we have enough information to also talk about the 800 pound gorilla in the room... Q2 earnings. I want to touch on both very briefly though, because I want to devote most of today's time and space to telling you about the new trading (though maybe I should say 'investing' in this instance) suggestion we told you about in Tuesday's newsletter.

First things first - the market. As you certainly know by now, it's up pretty firmly today, higher by 0.6% as I write this on the heels of good news from Intel, Hewlett-Packard, and Boeing. None of this really changes anything for us though.

Remember, yesterday we pointed out to you how we've come to expect higher highs and higher lows based on the pattern we've seen since the early-June reversal. Well, even with today's bounce we've yet to make a higher high, or even test the key resistance level around 2980 for the NASDAQ Composite. Though there's likely enough gas in the tank to get us that far, I'm not going to be impressed until the composite can actually get above - and stay above - the 2980 mark. Until that happens, I still have to expect the same basis up-and-down stuff we've seen so far... though at least it's net-bullish stuff.

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Well, if you don't like what's going on in the market on any given day, just hang tight. It will change. This is exactly why we continue to reiterate a contrarian approach to the markets on a short-term trading basis. Last week, we suggested the possibility of at least a short-term rally across the major indexes going into the new week. However, the rally initiated itself a little earlier than anticipated on the heels of Thursday's minor capitulation to the downside.