This brief comment below from the Legendary Trader Dennis Gartman.  For subscription information for the 5 page plus Daily Gartman Letter L.C. contact – Tel: 757 238 9346 Fax: 757 238 9546 or E-mail: dennis@thegartmanletter.com or HERE to subscribe at his website

SHARE PRICES ARE REBOUNDING with sanity returning here just as sanity has returned to the forex markets following the beating administered by the Obama Administration’s naïve decision to release the Goldman suit information Friday morning.  Saner minds are prevailing and wisdom is trumping naiveté once again.  Our Int’l Index has risen 0.3%, much of which is from Asia this morning and part from N. American share dealing yesterday.  Earnings season is now hard upon us, and we are expecting Apple’s earnings today, with the Street’s consensus running to or near $2.43 for the quarter compared to $1.33 a year ago. Bank of New York, State Street Bank and Mellon’s earnings top the financial services today, while J&J and Coca-Cola are the consumer products earnings reports of the greatest interest.   After the close last evening, IBM reported, and although it “beat” Street estimates, it apparently did not “beat” sufficiently, with shares falling in the aftermarket.

What has our eye this morning is the overt weakness in steel shares in the past several weeks.  It makes little difference what steel company one looks at, all are down and all are down materially… but importantly back to what we consider to be support.  If “risk” is going back on the table we’d be reasonably intent upon taking that risk in the form of steel. Perhaps we should cast about looking for metals and basic materials ETFs. That may be the better choice rather than be open to the vagaries of individual companies and earnings “hits or misses:”

Chart posted by Money Talks