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Zacks #1 Stocks on the Move 05/17/2013

Company Name Symbol %Change
VIASAT INC VSAT
19.35%
OLD SECOND B OSBC
5.76%
GAMCO INVEST GBL
4.61%
CORNING INC GLW
4.47%
SYNCHRONOSS SNCR
4.23%
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Dear Subscribers,

The sell off extended for a second day, which is a surprise to no one. The Dow got as low as 12,063 before bouncing back a bit. Sure it's possible this could just be a two day correction. However, I highly doubt that stocks can move higher without scaring investors a bit more. Most likely an intraday dive under 12,000 is what is in the cards and then we wrestle over 12,000 once again.

Once this test of investor conviction is done, then Dow 12,000 will most likely become a firm level of support from which the market can press to new highs. And that will happen because the economic recovery continues on track no matter what is happening in the Middle East. This will likely be apparent in the Durable Goods report on Thursday and revised Q4 GDP on Friday. If for some reason these reports show weakness, then yes it is possible to spend a little time under 12,000 until the preponderance of economic evidence helps to push stocks higher again.

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Best,

Steve Reitmeister
Executive VP, Zacks Investment Research

 

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