BUYING CPI NEWS

The future market is green, red, green again, though modestly, even with a higher core CPI number. I am not surprised because there are a lot of "buying the CPI news" investors there, including yours truly. I would have preferred a lower opening, higher closing, instead of the recent pattern of higher opening and sell-off closing. The more intrigue question is what would happen with commodities, particularly metals, after the bloodshed yesterday? I believe metals might have a relief rally here, although I am not too sure how far it will go. I may add some metal stocks today, provided that gaps up are not significant.

On stocks, SMTS announced a great quarter with EPS of 0.15, beating estimate of 0.10. The company maintained its full year guidance of 50% revenue growth and 0.40-0.42 EPS. I believe the company is playing the game of UPOD (under-promise, over-deliver). I can see 0.5-0.6 EPS easily. "What an ugly chart", a technician would have said. I agree, but I still like this stock. There's not a lot of 50%+ growth stock out there, particularly not a "quasi-monopoly". If you want to own this one, be prepared for a rough ride.