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Zacks #1 Stocks on the Move 06/18/2013

Company Name Symbol %Change
STAAR SURGIC STAA
10.98%
DTS INC DTSI
6.89%
ANIKA THERAP ANIK
6.04%
LUMOS NETWOR LMOS
5.70%
INSTEEL IND IIIN
5.28%
Zacks ZACKS.COM
PROFIT from the PROS

Tactics that Work in Good Markets and Bad
 
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A New Battle Inside the Stock War

Most bear markets take several months to a couple years to fully unfurl. Over that long stretch of time there are painful negative runs for stocks followed by relief rallies followed by drops to new lows. Rinse and repeat. Rinse and repeat.

Just look at the charts for the last two bear markets to see what I am talking about (2000 – 2002 and 2008 – 2009). Right now I believe we are only 2 months into a new long term bear market. However, the serious drop to recent levels is enough pain for now and likely we are ripe for an extended relief rally.

Why? Because expectations are incredibly low means that anything better than recessionary numbers will appeal to investors. The latest economic data fits that mold. Plus I am anticipating that earnings season and Q3 GDP will be better than the meager expectations. This sets up the rest of the month as one with greater upside possibilities than downside. Thus, for the first time since July I am net long stocks in my portfolio.

Again, I think the long term picture is negative. So if this relief rally unfurls and a recession still seems in the cards, then I will gladly take my long profits off the board and switch back to net short once again.

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Best,

Steve Reitmeister
Executive VP, Zacks Investment Research

 

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Best,

Steve Reitmeister
Executive VP, Zacks Investment Research

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