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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%
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Tactics that Work in Good Markets and Bad
 
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Bounce Arrives on Time. Now What?

You could smell a bounce coming from a mile away. I mean, what else do you expect after the S&P was down 11 of the first 14 days of May... and every day last week?

And please don't waste your time reading articles citing the news of the day and how it moved the markets. That is rubbish. Absolutely nothing happened on a fundamental level since last Friday to move stocks. They simply bounced from oversold conditions.

That begs the question; What happens next?

Unfortunately the key fundamental drivers are unchanged. That being a solid US economy not being robust enough to stop people from worrying about a European debt disaster. And with Greek elections not til June 17th... and the odds of a Grexit not known til after that, then the pressure will remain to the downside.

I think there is maybe 1-2 more days of follow through to the upside before we retest 1300 once again. And perhaps on down to the 200 day moving average at 1278. From there I expect a firmer bottom to form that would only crumble if a European disaster actually took hold.

Trade accordingly.

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Best,

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

 

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Steve Reitmeister
Executive VP, Zacks Investment Research

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