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Zacks #1 Stocks on the Move 05/21/2013

Company Name Symbol %Change
SCIENTIFIC L SCIL
8.00%
NATUS MEDICA BABY
6.11%
SUMMER INFAN SUMR
6.02%
RADIANT LOGI RLGT
5.32%
NEW ORIENTAL EDU
4.51%
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The Emperor's Old Clothes

Kevin Cook here, starting the week off for Steve and still wondering what he said to Bernanke in Jackson Hole to quash QE3.

As I write, the Eastern seaboard still battles Hurricane Irene as it devolves into a tropical storm. Some lives were lost and though the winds slip below 70 mph, power outages are at record levels and flooding could persist for days, affecting millions and causing major disruption to thousands of businesses and possibly to financial markets. The strong Wall Street close Friday seemed to strongly discount the storm's potential impact, but the damage has yet to be fully assessed. Our thoughts are with all affected in hopes that life, property, and livelihoods remain safe and secure.

What did we learn from the most over-rated of speeches ever? Ben is as optimistic as ever. Remember in June, he turned a little worried, even perplexed, about the stalling economy? And he also warned us then—with an eye toward Congress—that budget wrangling could hurt the recovery even more. Seems nobody in Washington was listening.

While acknowledging the healing required for the systemic banking/housing crisis, arguably the most important economist in the world said "the growth fundamentals of the US do not appear to have been permanently altered by the shocks of the past four years." Now that's what I'm talking about!

Though there was little new here for stimulus junkies to chew on, there were some fresh remarks directed toward the Europeans, and Congress again. He trusts "that our European colleagues fully appreciate what is at stake... and will take all necessary steps." Translation: could we please have some shock-and-awe bond buying to shore up your markets!

As always, markets are a confidence game, whether in D.C. or Brussels. Bernanke and Co. have tools and they are not afraid to use them—if and when the time comes. That's monetary poise and confidence money can't buy. To see how I confidently played the rally last week and bought the fear right after we found no QE3 prize in our cereal, see my piece below about the speech.


Featured Commentaries on Zacks.com
•  GDP: Growth Revised Down, Quality Up
•  The Emperor’s New Speech
•  Saddle Up for the Gold Bull

Best,

Kevin Cook
Senior Stock Strategist, Zacks Investment Research

 

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Steve Reitmeister
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