2:25pm (EST) 

The talking heads are saying we are off to a disappointing start to the earnings season but obviously they are reporting on the wrong companies.

We have mentioned Wall Street and the media makes too much out of Alcoa’s (AA, $10.19, down $0.11) earnings which “officially kicks off earnings season every quarter.  The company reported a profit of $172 million, or $0.15 a share, versus $61 million, or $0.06, a share in the year-ago quarter.  Revenue came in at $6.4 billion.

Wall Street was looking for a profit of $0.22 a share on $6.2 billion in revenues. 

Shares of Alcoa were down 5% for much of the morning, falling to a low of $9.73, but have rebounded to trade back above double-digits.

Elsewhere, Pepsico (PEP, $63.25, up $2.30) is surging 4% after they beat estimates by a penny.  The company reported a profit of $2 billion, or $1.25 a share, versus $1.92 billion, or $1.19 a share, in the year ago period. Excluding charges related to an acquisition, Pepsi actually earned $1.31 a share.  Revenue came in at $17.58 billion

Analysts were looking for $1.30 a share on revenue of $17.11 billion.

There were some worries that Pepsi would miss estimates (Goldman) but we did the research over the weekend and reported our finding in our Weekly Wrap.  We were bullish on the company’s upcoming quarter and we told our subscribers to stay long on our call options we recommended last week.  The trade is currently up 70% on Pepsi’s pop.

We also recommended a trade in Infosys Technologies (INFY, $56.73, up $4.07) yesterday that is up over 100% in just 24 hours.  The company not only beat Wall Street’s estimates but they raised guidance.  Winner, winner chicken dinner. 

As we head to press, the market is right on our next set of upside targets and we could be on the verge of a breakout.  Of course, we are at the top of the trading range so we could also fall back.  However, we think there are a lot of people who are going to get caught shorting this market and there could be more room to run for the bulls.  

As we head to press, the Dow is up 180 points to 11,596 while the S&P 500 is higher by a double-deuce (22 points) to 1,217.  The Nasdaq is zooming 42 points and is at 2,625 just like we have been planning for.  Subscribers, check the Members Area for the hot updates!