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Zacks #1 Stocks on the Move 05/23/2013

Company Name Symbol %Change
WESTELL TECH WSTL
7.18%
MAXWELL TECH MXWL
5.30%
A M R CP AAMRQ
3.78%
ALLIANCE FIB AFOP
3.02%
SYNAPTICS IN SYNA
2.84%
Zacks ZACKS.COM
PROFIT from the PROS

Tactics that Work in Good Markets and Bad
 
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Is the Relief Rally Over?

The Dow surged 254 points on Monday to close at 11,539. We had a similar rally just two weeks ago when the Dow tacked on 213 points to close at 11,482 on August 15th. That rally ended with a thud as we found ourselves back at 10,817 after 4 straight days of beatings.

Is this time different? Unfortunately I do not see a single piece of economic evidence that makes me feel better now than I did just 2 weeks ago. In fact, the negative revision on Q2 GDP from last week plus collapsing Consumer Sentiment only has me feeling more negative about where we stand now... and where we are likely going. So I took some more profits on long positions Monday and find myself strongly short the market as I expect we will be heading lower soon.

Note that if you have a 2+ year time horizon, then yes, you can snap up some blue chips now paying great dividends to weather any potential storm. But if you have more of a trading mentality, then I recommend that you prepare for a leg lower.

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Best,

Steve Reitmeister
Executive VP, Zacks Investment Research

 

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Today's Top Stories: Tuesday- August 30, 2011

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NEW ZACKS VIDEOS:

PeopleAndPicks.com:

VIP "rjm77me" is improving his technique and pulling in returns with BUY calls in (ANN), (BHI), (TIE) and (TKR). Read More...

EARNINGS PREVIEW Data-Dump Week

The economic data out next week should help answer the key question: Are we headed back to recession or not? Read More...

EARNINGS TRENDS: Non-Financial Earnings Growth to Slow

Earnings are expected to grow 12.45% excluding the Financials in the third quarter, down from 19.8% in the second quarter, but when the second quarter earnings season started, growth was only expected to be 8.9%. Read More...

 

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Best,

Steve Reitmeister
Executive VP, Zacks Investment Research

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