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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%
Zacks ZACKS.COM
PROFIT from the PROS

Tactics that Work in Good Markets and Bad
 
--

Beware of What You Ask For...

...because you just may get it!

The recent rally has been mostly fueled by speculation of new Fed action to be announced today. I think that is foolish.

First, the Fed is NOT likely to introduce a new program as Bernanke has a long history of NOT giving the market what they childishly demand. Especially when the US economy is far from dire straits.

Most likely they offer up an extension of Operation Twist to keep long term rates low… not necessarily lower than they are now. Just keep them nice and low in the grand scheme of things so that other forms of investing appear more attractive than holding cash or bonds.

Second, if they did launch a new, ambitious initiative it may have the opposite effect of the one intended. That being a warning sign that the Fed is fearful of what lies ahead with subsequent sell-off.

My friend and colleague, Kevin Cook, saw this recent rally as a "buy the rumor, sell the news" type event. So he tossed another large ultra ETF short position into his Tactical Trader portfolio yesterday. I think that was the right move.

Note that Kevin will be at the helm of the Profit from the Pros' emails for the next couple days while I'm on a business trip. Talk to you all again on Monday.

Featured Commentaries
•  What Do You Expect From Fed: QE3, Twist or Nothing? The rest of the Zacks community chimes in.
•  Increasing Volume to Uncover Institutional Buying

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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