Back to top

Free: Subscribe to Profit from the Pros

Zacks' Bull Stock of the Day, morning market e-briefing, strategies for picking the best stocks, funds, ETFs, and options plus more.

Join 500,000+ investors in-the-know.

Privacy Policy


View the PFP Archive

Politicians are to Blame

Why did stocks drop so heavily on Monday?

You can aim your scorn directly at the politicians. That starts overseas as Italians went to the polls in a tightly contested election. What is clear is that their appetite for austerity is on the decline. This creates uncertainty, which is the enemy of the stock market.

Then in the states, President Obama kept up his offensive about the dangers of the spending cuts set to take effect on March 1. Most of the experts here at Zacks consider this a non-event as you will see in this new Real Time Insight post: Trading the Sequester

Now what happens?

Welcome to the new trading range of 1475 to 1531. The low side has some serious support at the crossroads of the previous highs and the 50 day moving average. And the top end is framed by the recent highs at 1531. Expect to stay in this range for a while until a clear catalyst emerges. I would say the odds are still in favor of a breakout above the range.

Featured Commentaries:

•  Time to Bank on Regional Bank ETFs?

•  Consumer Staples Stock Outlook - Feb 2013

•  Top 5 Zacks #1 Ranked Technology Mutual Funds

•  How to Sell Calls for Income Using a Vertical Spread

•  What is a Junk Bond?


Steve Reitmeister

Executive VP -

Zacks Investment Research

Follow Us:  


This Is Your Perfect Chance to See ALL Zacks' Picks

Given today's range-bound market, right now is the best time to claim full access to all of our private buy and sell recommendations. You'll even see the stocks that are so exclusive they've been closed to the public. What a perfect way to bolster your portfolio with the best short-term trades and long-term investments no matter what the market is doing.

Today, you can get thousands of dollars worth of services at a low price for 30 days. Plus, the picks are backed by the boldest guarantee we ever made.

See our latest stocks today >>

Bull & Bear of the Day

Zacks Rank #1 Strong Buy

International Gaming (IGT)

Shares of this gaming stock may not be as much of a gamble as you think. IGT could be worth a look if you are looking for upside...


Zacks Rank #5 Strong Sell

Aeropostale (ARO)

Even though Aeropostale (ARO) shares are down over 50% from where they were just 10 months ago, they still may be too expensive...

Stock Picking Strategies

The Short Ratio as a Stock Sentiment Indicator  ››

Parabolic Rallies & Perpetual Tops  ››

3 Excellent ETFs for Income Investors  ››

Funds Commentary

Top 5 Zacks #1 Ranked Technology Mutual Funds  ››

Can the Dollar ETF (UUP) Finally Break Out?  ››

SPDR Debuts Low Volatility ETFs  ››

Options Strategies

Bear Call Spread for Sideways to Bearish Outlook  ››

Video Reports

Two Great New ETFs

These two interesting new ETFs launched recently are poised for success.

Seven Weeks And Counting

Zacks experts weigh in on factors affecting this momentum driven market.

Low Expectations Drove Q4 Earnings Surprises

The Q4 earnings season was good enough because expectations were so low.


A crazy new way for the gov't to spy on you

If you think privacy in America is disappearing now, wait until you see what the government has up its sleeve next.

Get the full story here...

Manage Your Newsletter Subscriptions

Update Preferences         Update Your Profile         Unsubscribe         Feedback         Send to a Friend

This free resource is being sent by to our subscribers. We look for investment resources and inform you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable.

All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, brokerage, market making or asset management activities of any securities. Visit for information about the performance numbers displayed in this press release.

Zacks Emails

If you would prefer to not receive future profit-producing emails from the primary purpose of which is the commercial advertisement or promotion of a commercial product or service, then please click here and confirm your request. If you have trouble with the unsubscribe link, please email

Zacks Investment Research, Inc.
111 N. Canal St., Suite 1101
Chicago, Illinois 60606