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Zacks #1 Stocks on the Move 05/20/2013

Company Name Symbol %Change
ORBOTECH LTD ORBK
10.86%
NOAH HOLDING NOAH
9.92%
SONIC FOUNDR SOFO
9.45%
VIPSHOP HOLD VIPS
9.20%
RENEWABLE EN REGI
8.98%
Zacks ZACKS.COM
PROFIT from the PROS

Tactics that Work in Good Markets and Bad
 
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Dear Subscribers,

The market had to correct sooner or later. So the rising tensions in the Middle East offered the best excuse for it to happen now. Yes problems in those areas could cause oil prices to escalate further, which would be like an extra tax on the US economy. However, it certainly will not derail the US recovery.

So this is just the long overdue pullback that stocks needed. I highly doubt we will fall below Dow 12,000. Afterwards the bull rally will resume, but profits will probably come at a slower pace than we saw of late.

What does a correction mean for Zacks #1 Ranked stocks? In general, the more a stock has gone up recently, the more it will decline on the pullback. Don't try and read more into the moves than that. Just hold on to your #1 stocks with full anticipation that they will be producing solid outperformance after the correction is over. And if you don't have many Zacks #1's in your portfolio, then now is a good time to grab them at discounted prices.

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Best,

Steve Reitmeister
Executive VP, Zacks Investment Research

 

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Best,

Steve Reitmeister
Executive VP, Zacks Investment Research

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