Bad News, Good Price Action!

We again got terrible data out of the U.S. this morning as both durable goods order and new home sales came in below consensus estimates. However, while the S&P took a deep dive in early trading, it quickly bounced off the low at 1,040 (key technical support) and ended the day up 3.5 points. Good news, bad price action (sell), good/bad news, good/bad price action (hold), bad news, good price action (buy). Therefore, I maintain my short-term bullish view on the market and will be looking to buy stocks that have been hit hardest such as technology shares. I believe stocks like IBM, Microsoft, Intel, etc. offer decent value with dividend yields in the 2%-3% range.