Back to top

View the PFP Archive

ZACKS
The Next Breakout to the Upside

Kevin Cook here to start the week off for Steve...

Last week we learned that institutional investors are fairly confident the sequester won't do material damage to the economy. And the strong ISM Manufacturing Index and U of Michigan Consumer Sentiment told us those areas seem capable of absorbing whatever fallout comes.

So what is the market's next move after the strong price action that kept the S&P within 4% of its all-time high? Clearly the next breakout to the upside is right before our eyes at the highs for the past 3 weeks, 1525-30. Once we get through there, my target for Q1 of 1550 is a done deal.

But what if we just fall back into the range? Since the push above 1500, the low has been 1485 and the 50-day moving average sits right down there too. The real line in the sand for bulls is 1475 because that's where the last breakout occurred on the crack of the September highs.

Bottom line: The market has gone through some selling distribution and fear-driven volatility typical of a medium-term top. But the bulls have both positive economic surprises and good price action on their side. And that's why it still pays to buy the dips looking for the breakout above 1530.

Featured Commentaries

•  Bull-Bear Debate: Which Side Are You On?

•  Zacks Rank Buys: Too High to Buy?

•  Best ETFs of February

Best,

Kevin Cook

Senior Stock Strategist

Zacks Investment Research

Follow Us:  

Sponsor

Why Haven't You Looked at Zacks' Top Stocks?

Just press a button and PRESTO out pops the list of stocks from a market-beating strategy. In fact, since 2001, one screen has averaged a yearly gain of +67.4%. Even during 2008, while the market plunged -37.0%, those picks were up +15.3%.

Investors marvel that it's "like a license to print money." "No benchmark stands a chance!" Why wait another day?

See the latest picks free>>

Bull & Bear of the Day

Zacks Rank #1 Strong Buy

Red Robin Gourmet Burgers (RRGB)

This small cap restaurant chain could be a tasty snack in investors' portfolios thanks to impressive growth prospects.

 

Zacks Rank #5 Strong Sell

hhgregg (HGG)

Do not be fooled by the recent surge, HGG is in serious trouble and investors might be saying 'help me!' before long.


Stock Picking Strategies

The Right Way to Find Growth and Value Stocks  ››

3 ETFs for Higher Returns & Lower Risk  ››

Ahead of Wall Street  ››


Funds Commentary

Top 5 Zacks #1 Ranked International Bond Funds  ››

Best and Worst Performing ETFs of February  ››

ALPS Launches New Income ETF (HVPW)  ››


Options Strategies

How to Profit from Option Volatility  ››


Video Reports

Too High To Buy?

Brian Bolan discusses American Railcar (ARII) and LA-Z-Boy (LZB).

Market Crashes & Waterfall Corrections

Can the market drop 20% in a day? Lessons from single-day crashes and extended corrections.

Two Great New ETFs

These two interesting new ETFs launched recently are poised for success.

Sponsor

Increase Investment Returns with Free Zacks' Portfolio Tracker

Follow your investments easily in one place. Get free email updates that alert you to major events affecting your stocks and funds, including time recommendation changes, earnings announcements and, most importantly, earnings estimate revisions.

Click to Learn More>>


Manage Your Newsletter Subscriptions

Update Preferences         Update Your Profile         Unsubscribe         Feedback         Send to a Friend
 

This free resource is being sent by Zacks.com to our subscribers. We look for investment resources and inform you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable.

All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, brokerage, market making or asset management activities of any securities. Visit www.zacks.com/performance for information about the performance numbers displayed in this press release.

Zacks Emails

If you would prefer to not receive future profit-producing emails from Zacks.com the primary purpose of which is the commercial advertisement or promotion of a commercial product or service, then please click here and confirm your request. If you have trouble with the unsubscribe link, please email support@zacks.com.

Zacks Investment Research, Inc.
111 N. Canal St., Suite 1101
Chicago, Illinois 60606