Crazy Rotation Day

Monday was one of the crazier days in recent memory. At first glance it's hard to see it with the S&P nearly breakeven on the day. Yet it becomes more apparent when you note the extreme difference between the Dow's gain of +0.56% versus the Nasdaq's hefty decline of -0.76%.

How the heck did this happen?

It's called a rotation day. Some groups were in favor (retail and banks). And other groups (like tech) got slaughtered.

What should you do about it?

Nothing. You can't chase a rotating market because you will never catch it. Kind of like a dog chasing its tail.

Instead you just stay put with your fundamentally sound stocks (strong estimate revisions and attractive valuations). This way when the rotation ends, and sanity is restored to the market, then these kinds of stocks will outperform.

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Best,

Steve Reitmeister (aka Reity... pronounced "Righty")
Executive VP, Zacks Investment Research

Today's Top Stories: Tuesday- April 17, 2012

ZACKS RANK BUY STOCKS

• Aggressive Growth - Kona Grill (KONA) reported revenue of $23 million roughly $1 million more than the Zacks Consensus Estimate. EPS of $0.12 was $0.11 ahead of the estimate or a 1,100% beat. Read More...
   
• Growth & Income - Mobile TeleSystems (MBT) analysts expect strong double-digit earnings per share growth over the next few years. On top of this, Mobile pays a dividend that yields a stellar 5.6%. Read More...
   
• Momentum - Sun Hydraulics (SNHY) has beaten the Zacks Consensus Estimate in five of the last six quarters. In those five beats, the company has topped estimates by an average of more than 8%. Read More...
   
• Value - AGCO (AGCO) has a price-to-book ratio of just 1.4. A P/B ratio under 3.0 usually designates value. AGCO's P/S ratio is just 0.5. A P/S ratio under 1.0 can mean undervalued. Read More...
   

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

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• Top 5 Zacks #1 Ranked BlackRock Funds Read More...
• Six Easy Ways To Target Low Volatility Stocks With ETFsRead More...
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• Fund Homepage

• Bull Of The Day: Hain Celestial Group
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• Bear Of The Day: Citi Trends, Inc.
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• Ahead of Wall Street
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• Zacks Industry Outlook: Retail Industry Stock Outlook - April 2012
  The broader markets have showcased signs of a better pace of recovery and have thus infused hopes of a better economic scenario going forward. Read More...
  
  
• Analyst Blog Highlights
• Alliance-Premier Designs Inks Deal
• JCI Commences Production in Hungary
• Sigma-Aldrich Intros CHOZN System
• Full Analyst Blog

• Is The Bull Still Intact?
• Roundtable Top Picks for the Week of Apr. 16th
• What to Expect From the Earnings Season?

PeopleAndPicks.com:

VIP "Neurodoc's" screens have proven to generate profit with BUY calls in (CERN), (OMN) and (STX). Read More...

• Google fined $25,000 for stonewalling @ CNNMoney.com
• Work for Apple or Work for an Airline? United CFO Steps Down @ TheStreet.com
• Basic Materials Sector Wrap @ FOXBUSINESS.com
• 'Buffett Rule' fails Senate test vote @ MarketWatch.com

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Best,

Steve Reitmeister
Executive VP, Zacks Investment Research

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