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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%
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Dear Subscribers,

GDP was expected to ratchet up to 3.4% on Friday. Amazingly it slipped to 2.8% and yet still investors celebrated by pushing stocks higher. How the heck did that happen?

First, because most of the shortage was from lower state and local government spending. That means that the consumer and Corporate America are still showing healthy growth. Those are the more important pieces of GDP for stock investors. Second, because "muddle through growth" like 2.8% means that the Fed will keep pumping in stimulus which is generally good for stock ownership.

So is this little correction over? Certainly it's possible that we still have to test Dow 12,000 before the rally can resume. Yet I think it is also possible that we got close enough to the mark on the recent downdraft. For me the odds of the market being higher a month from now are better than it being lower. Meaning I am still riding the bullish trend until it is no longer my friend.

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Best,

Steve Reitmeister
Executive VP, Zacks Investment Research

 

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