Why Ask Why?

Tuesday was another crazy day where we saw stocks soar nearly 3% before they lost over half the gains in less than an hour before the close. This prompted a Zacks customer to send me the following email just before the close:

"Thank you for your insightful advice, but today I want to thank you for teaching us to have iron stomachs... we'll see how this turns out in 20 minutes. What a crazy day. PLEASE tell us what you think is happening."

Certainly he is not the only investor confused by this whipsawing market. So here is the best way to put things into perspective. We have been stuck in a trading range since early August between 1120 and 1220 on the S&P 500. Investors want more proof of whether or not we are headed into a recession to justify a move outside the range.

So every move inside the range is meaningless. The first move outside the range, in either direction, will have great significance. I still believe that first breakout will be to the downside.

Note that in this article, S&P 500 Solidifies 1,100 Stronghold, Kevin Cook gives his interpretation of recent market moves. Yes, it differs from my view. Why? Because the movement of the stock market is NOT an exact science. So we do not force our editors to fake like we are all in agreement. Rather, we give them freedom of speech to share their unique viewpoints.

Of course it would be simpler if we gave you just one opinion. But remember that opinion could be 100% wrong and that would not help you meet your objectives. We hope you appreciate our policy to provide these diverse views so you can chart a course that makes the most sense to you.

Other Featured Commentaries on Zacks.com
•  Top 5 Blackrock Mutual Funds
•  Aggressive Growth Stock Picks-Sept. 27, 2011

Best,

Steve Reitmeister
Executive VP, Zacks Investment Research

Today's Top Stories: Wednesday- September 28, 2011

ZACKS RANK BUY STOCKS

• Aggressive Growth - Embraer S.A. (ERJ) year's consensus is up 11 cents, to $2.26. Next year's average forecast is up 13 cents, to $2.64. This is putting projected growth rates at 18% and 17%, respectively. Read More...
   
• Growth & Income - Nordstrom, Inc. (JWN) earnings per share came in at 80 cents, beating the Zacks Consensus Estimate of 73 cents. It was a 20% increase over the same quarter in 2010. Net sales rose 12%. Read More...
   
• Momentum - Jazz Pharmaceuticals, Inc. (JAZZ) saw solid movement in estimates, with the current year adding 22 cents in the last month to $3.10. The next-year estimate is pegged at $4.03, a bullish 30% growth projection. Read More...
   
• Value - Men's Wearhouse Inc. (MW) surprised on the Zacks Consensus by 6.7%. EPS were $1.11 compared with the consensus of $1.04. It continued the company's impressive earnings surprise streak now at 9 consecutive quarters. Read More...
   

Learn how to profit from our exclusive Zacks Rank stock-ranking system with free resources. Read More...

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• Bull Of The Day: Avis Budget Group
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• Bear Of The Day: Gerdau S.A. - ADR
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• Zacks Industry Outlook: Publishing Industry Stock Review - Sept. 2011
  According to the data released by the Newspaper Association of America, online advertising revenue climbed 8% in second-quarter 2011 to $803 million from $744 in the prior-year quarter, reflecting a sixth consecutive quarter of growth. Read More...
  
  
• Analyst Blog Highlights
• Dr Pepper Reiterated at Neutral
• Earnings Preview: Jabil Circuit
• Brinker Stays Neutral
• Full Analyst Blog

• Aggressive Growth Stock Picks-Sep. 27, 2011
• Putting Things in Perspective
• Value Stock Picks-Sep. 26, 2011

PeopleAndPicks.com:

VIP InvestmentMAGE is staying on top of the leaderboard with BUY calls in (LEN), (MLM) and (TSCO). Read More...

• Stocks end higher for a third day @ CNNMoney.com
• Fed Dissenter Fisher: Political Leaders Must 'Get Their Act Together' @ FOXBUSINESS.com
• Latin America stocks rally; Brazil up a second day @ MarketWatch.com

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Best,

Steve Reitmeister
Executive VP, Zacks Investment Research

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