BOUNCE- finally

IBM saved the year? IBM announced earnings will be much ahead of estimates. And that was enough to make the markets soar monday morning. To my mind it was way oversold and on Friday we reached the critical technical levels without breaking down further, so a bounce or a rather strong rally commences.

Tomorrow the financials start the confession. Citigroup will report numbers and the street says it will report 24 billion dollars of writedowns- OUCHAHOO. But what is remarkable is even after hearing this number C is trading up .20- .25 cents today. Resilience rules- I think there is less downside. So if they contain their reporting to what the street is saying, C rallies into the 30s. So am bravely holding onto our C position into the earnings. The downside is 25- if they were to report worse numbers.Other financials like JP Morgan that are better off with less subprime issues- should do well- JPM at 41 looks good to me.

COACH was downgraded today when its at 26. The analysts are hopeless and though I have been wrong in pounding for COH at 30 and 28- I dare say at 25.20 I am a buyer - for a quick rebound to 30 as people realize this stock is cheap even after the lowered estimates. Coach has a presence in emerging markets so even while US gals are holding onto their old handbags conserving the money in there... not so overseas. The company announced buybacks when the stock was trading at 32 or so. And the worst retail scene is in the price. My case rests. I shall keep a stop loss at 24.5- if it breaks 25... well we will re-visit this discussion.

About our winners, FRE from 25 to 30.75- I am selling half my position, as I think its got no reason to not run up to 35- ! And still raising the money will help fund my Coach investment.

I found a cheap stock that I was watching some time back. LLNW- in the streaming media business (AKAM is the leader) - the stock has been beaten down from 13 to 6 in the past couple of months. Last week it reported that the revenues are going to be ahead of estimates. See what that did to the markets today when IBM said just that. LLNW is still trading around 6.50- the market behaves itself and this one could be reversing up to 9-10 ...is my opinion- may have to be patient- the bottomline is that its in a hot sector- a new IPO -just hasn't kicked off interest yet. If the numbers are getting better as the company announced- the stock price looks like bottomed.

Not much else. I see no hurdles for a straight up move- and getting in and out of stocks at bottom levels- makes good money for us.

This week will be volatile- earnings reports from financials, INTC and IBM and also the inflation PPI and CPI reports have got to be watched- as strong numbers may prompt the fed to act sooner. Will see.

BUY on pullbacks is my advice. Sell a winners and move onto find the next beaten down potential winner.