1:45pm (EST) 

The market appeared to be in trouble after Wall Street heard IBM’s revenue miss last night but the bulls held the first wave of support and have actually turned things around as we head into the second half of trading.  IBM did say some good things as well as some other companies as earnings appear to be outweighing pessimism about the Europe’s debt crisis today.

International Business Machines (IBM, $176.55, down $10.04) reported a profit of $3.84 billion, or $3.19 a share, versus $3.59 billion, or $2.82 a share, in the year-ago period.  Excluding certain write-offs, the company actually earned $3.28 a share.  The suit-and-ties were expecting $3.22 a share.

Revenue came in at $26.16 billion, slightly less than the $26.26 billion that analysts had penciled-in.  Despite the sales miss, the company still raised guidance for the full-year which means they are expecting a better quarter when they report again in January 2012. 

Even better, IBM said it would earn at least $13.35 a share for the year, topping the previous forecast for at least $13.25 a share.  It was the company’s 10th straight quarter in which it has raised its full-year profit forecast.  IBM announced an incredible quarter and we would be buyers at $175.  In a year or two, it is possible IBM could be a $300 stock as the company expects to earn $20 a share by 2015.

Shares hit a 52-week high of $190 last Friday and despite another robust quarter, investors are clearly selling the news.  The 5% dip has accounted for 75 points against the Dow but the blue-chips have rebounded from a triple-digit loss to nearly a triple-digit gain.  And if it weren’t for IBM, the Dow would be right back at the top of its trading range.

The index is currently up 70 points to 11,467 while the S&P 500 is higher by 11 points to 1,212.  The Nasdaq is showing a 13 point pop and is at 2,628.

The bulls also got a bonus package when the Producer Price Index (PPI) report showed an increase of 0.8% for September versus expectations for a gain of 0.2%.  Yipee!

Apple (AAPL, $419.68, down $0.31), Intel (INTC, $23.30, up $0.02), Juniper Networks (JNPR, $21.05, up $0.65) and Yahoo (YHOO, $15.48, down $0.23) will announce earnings after the bell.  If these 4 horsemen can come in with better-than-expected numbers then Tech could rebound and break out of its trading range.   

We took advantage of the dip to add 2 new trades this morning so let’s go check them out!  Subscribers, log into the Members Area for the updates.  We could have a short-covering rally into the close so buckle-up.