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Zacks #1 Stocks on the Move 05/17/2013

Company Name Symbol %Change
VIASAT INC VSAT
19.35%
OLD SECOND B OSBC
5.76%
GAMCO INVEST GBL
4.61%
CORNING INC GLW
4.47%
SYNCHRONOSS SNCR
4.23%
Zacks ZACKS.COM
PROFIT from the PROS

Tactics that Work in Good Markets and Bad
 
--

Freight Train

The equation for what is happening now is fairly straight forward.

Big market rally + no fresh economic data + new European debt concerns = Correction

We saw this freight training coming for a while. That's why we prodded you to get more defensive in your portfolios. Hopefully your shorts and inverse ETF positions are showing some nice profits at this time.

The key question now is this: Where is the stock freight train headed?

I believe we are going to hit 1300 for sure. Probably see a little support there. But time and time again the market finds its way back to the 200 day moving average. That is a notch lower at 1277. From there it is a bit more of a mystery to me.

If European problems keep escalating + US economic data softens = stocks head even lower.

If European situation improves + US economic data stays solid = rebound.

At this time I am not giving up the long term stance that we will hit 1500 this year. However, I am open to the possibility that the European situation may be worse this time around and that US stocks will suffer as a consequence. For now, the above lays out the game plan.

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