Wednesday's action looks like typical topping behavior to me. That's because we started the day well into the red because of another poor showing from the Empire State Manufacturing report. However, Bulls retorted "not today baby" and decided to look past the bad news to press higher once again. That is quite often the last gas of a bull rally before it retreats. Note that I am only talking about the short term picture.
In general the recent economic data has mostly supported the case for the muddle through economy. That doesn't sound great on the surface, but it's a heck of a lot better than a double dip recession. So over time the slow growth view should emerge victorious with stocks headed on an upward path of about 5-8% per year. In the short run I still think that bears will look for any piece of evidence they can to support their bleak outlook. And if you look hard enough for something, you will find it. That is why I am a bit more defensive in the short run, yet holding on to my favorite growth stocks for the next upward leg.
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Today's Top Stories: Thursday- September 16, 2010
ZACKS RANK BUY STOCKS
- Aggressive Growth - SINA Corp. (SINA) reported a 10% increase in net revenues, to $99.4 million. Advertising revenue was up 52% and came in higher than expectations, at $73.1 million. Read More...
Growth & Income - Rogers Communications Inc. (RCI) reported second quarter earnings per share of $0.79, beating the Zacks Consensus Estimate by 20% for the company's sixth consecutive earnings beat. Read More...
Momentum - Portfolio Recovery Associates, Inc. (PRAA) estimates took a nice jump forward on a good Q2, with the current year gaining 33 cents to $4.16. The next-year estimate is up 46 cents. Read More...
Value - Thompson Creek Metals Company Inc. (TC) reported second quarter results that surprised on the Zacks Consensus Estimate by 11 cents. It was the third surprise out of the last 4 quarters. Read More...
Learn how to profit from our exclusive Zacks Rank stock-ranking system with free resources. Read More...
This "Doomed Nightmare" Oil Rig
It's already the most investigated disaster in maritime history, but history is dead wrong on one key point regarding BP's Deepwater Horizon oil rig. I know: I've learned things through my contacts that are not disseminated to the public.
It all adds up to an unrecognized opportunity for investors who can move decisively to potentially double, double and double a $10,000 grub stake into a huge fortune.
Read on and I'll explain.
ZACKS MUTUAL FUND RANK
- Top 5 Diversified Bond Mutual Funds
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See all the great mutual fund resources.
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EDUCATION: Growth and Income
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Player "inthemoneystocks" calls de ja vu..."Today's market action looks much like the prior two session. The major stock indexes have declined at the open only to rally back into positive territory. The volume has once again been extremely light". Read More...
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