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Zacks #1 Stocks on the Move 05/23/2013

Company Name Symbol %Change
ALLIANCE FIB AFOP
5.21%
CYNOSURE INC CYNO
4.42%
DAWSON GEOPH DWSN
4.33%
MARRIOTT VAC VAC
3.27%
BLOOMIN' BLMN
2.93%
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Is Tuesday's Bounce for Real?

We spent two days pressed under the 200 day moving average at 1285. Yet on Tuesday we popped above... barely.

Those looking for some cause and effect behind the move could point to a solid ISM Services report. But really that was just in line with other recent economic news which points to the same tepid growth we have seen the past few years (about 1-2% GDP growth... aka Muddle Through growth).

Technicians will say we bounced from oversold conditions with some potential follow through. But likely we will continue to battle the 200 day moving average for a while.

I say don't draw any firm conclusions yet. The Greek elections are not on tap until June 17th. And the next European Summit is slated for the end of the month. Between now and then there will be a torrent of headlines. Some positive. Most negative. Not because the outcome is most likely bearish. Unfortunately it's just the nature of the media to be more negative because it makes them more money (aka fear sells).

As you have probably heard many times, this is a headline driven market right now. So given the above, we will most likely see more negative headlines for a while and thus stocks have a short term bearish bias.

Traders should play it balanced to short for now. Long term investors can start loading up on their favorite stocks on any dips. Just have the patience to weather the day to day swings to a likely payoff 6-12 months down the road.

Featured Commentaries on Zacks.com
•  Value Stock Picks - June 5, 2012
•  Stocks With Upgraded Broker Ratings

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

 

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Today's Top Stories: Wednesday- June 06, 2012

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