Back to top

Real Time Insight

You no doubt have heard about Goldman Sachs' forecast for another correction this year. This is a global strategy group that is sticking to their guns from an earlier call this year.

Given the 200-point run up to 1470, slowing earnings, and an approaching Fiscal Cliff, it's not hard to see why they would reaffirm their case last week.

But this market is trading on lots of discounted bad news. And it still remains strong. Fund managers aren't running scared. They are accumulating.

While the market is at risk here of falling back (we haven't had a good volatility scare to shake the tree in a while), I still believe we make new highs this year and that S&P 1400 will be strong support.

I do not cite 1400 because of the "round number" psychological effect, but because of all the work already done at 1390 this year and then because we sat on 1400 for the entire month of August before Draghi "saved the euro."

If big investors were really scared of the earnings onslaught we are about to get in the next 3 weeks, or of the looming Fiscal Cliff, we'd already be a lot lower I think.

It doesn't mean we can't get those fear-driven sell-offs on some bad earnings reports. I just think the market price action continues to make the case here for a break-out to the upside.

If I'm wrong, then this will be a very interesting top indeed. But I want to hear what other investors think.

Is the risk/reward right now in this market tilted strongly in favor of another correction?

Just Released: 5 Stocks to Double

Today, you are invited to download a free Special Report from Zacks Investment Research. It reveals five moves that could gain +100% and more in the next 12 months:

One is a "boring" business delivering blistering growth. Another is a red-hot oil and gas producer set to surge on a drilling breakthrough. Still another, an online payment provider, ignited a 53% sales explosion during the past year.

Close This Panel X

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
TRIQUINT SE… TQNT 20.37 +5.00%
CHYRONHEGO… CHYR 2.85 +4.78%
VASCO DATA… VDSI 14.72 +4.32%
RF MICRO DE… RFMD 12.27 +4.29%
ERBA DIAGNO… ERB 3.70 +2.49%