It should be evident by now that the rest of the earnings are going to come in at the same sort of magnitude over estimates. The focus is going to shift.

I like Merck, in particular, because here's a stock that's retreated dramatically from its high, but still has its earnings growth-rate intact, ... This company, I think, can grow about 13 to 15 percent. And its price-to-earnings ratio now is getting down to a level that I think is very reasonable relative to its long-term growth rate.

The fundamental environment, because we still have a whole host of earnings reports to come out, could work to slow the rally. But much of the pain and punishment has already been absorbed prior to the end of the quarter.

Technology needs to be the leader on the way up, because it was the leader on the way down. Even though the earnings reports are miserable, there's a light at the end of the tunnel. That's what investors are looking at right now.

Any (profit) short-fall in that growth rate at 110 times earnings means there's some risk in these stocks.