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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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PROFIT from the PROS

Tactics that Work in Good Markets and Bad
 
--

Reversal of Fortune

Many times over the last several months I was impressed by how we rallied higher without any real correction. That is because each time stocks headed lower, investors saw it as another chance to buy in. That was even true up to earlier this week.

Unfortunately on Thursday and Friday we saw a reversal of fortune. On both days the market jumped higher out of the gate only to see gains frittered away by the end of the session.

What does that mean?

It means that more investors are looking for a way out of the market at this time. Which means they see more downside in the near future than upside. Which means we will likely spend more time under the recent support of 1360.

In the near term I am using short ETF's to profit from a likely move down to 1280 to 1300. Over the long haul I am holding onto some of my favorite stocks through this pullback and looking to buy more on the dips.

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Best,

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

 

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Best,

Steve Reitmeister
Executive VP, Zacks Investment Research

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Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

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