People are still careful about their discretionary spending, of course. They're not going to buy electronics just for the heck of it. As an example, Mark Fightmaster recently took a look at sales in the video-game industry and saw that they were a bit slow. Best Buy, like its competitors, has a department dedicated to entertainment software for all the major consoles.

Actually, I was in Best Buy last week and bought a video game. I can't say that the store was wall-to-wall with shoppers, but it was far from a ghost town. So, I'm not going to be surprised by a decline in same-store sales and top-line sales. Nevertheless, whenever I go into my local Best Buy, I see all the young kids, all the generations who are comfortable with the iPod and the Internet, browsing and buying DVDs and other gear. A younger demographic isn't necessarily as concerned with an ongoing recession as an older one is, so this is probably a saving grace for Best Buy.

Shares of Best Buy have seen a run-up, and I'll tell you, I think shares could be higher on the earnings report, assuming the company does indeed beat. Investors remain in the mood for buying stocks as far as I can tell, and are looking for any excuse to get in on the market action. I myself wouldn't take the chance with an earnings trade, though. I still want to remain disciplined and plan my buys very carefully. The market mood could change swiftly, and considering the price action on Monday, I think prudence is nothing less than obligatory.

Disclosure: I don't own any company mentioned; positions can change without notice.