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I Am Calling the Bluff

Even during a roaring bull market, stocks don't go straight up. There is a natural ebb and flow to their movement. And so when they have pullbacks, you don't worry that the fundamentals have all of a sudden gone bad. Rather, it's just at certain points investors will take profits and stocks head south for a little while. Then they get back on their northern journey.

The problem now is that the ferocity of these sporadic downward moves is leading too many investors to a false assumption; that these pullbacks are a sign that the fundamentals have changed for the worse and perhaps they should start heading for the exits.

This is simply not true. Economic data points to recent improvements in manufacturing, services, income, spending and jobs. Add it all up and many economists now expect GDP at 3%+ in Q2.

Because of this I am calling the markets bluff and on Thursday I used some of my excess cash to buy a 3X small cap ETF that pushes me now to 114% long the market. Sure I may be wrong for a little while. But in time the strong fundamentals will lead the way for stocks to make new highs and those of us who are still firmly long the market will have the last laugh.

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Steve Reitmeister (aka Reity...pronounced "Righty")

Executive Vice President

Zacks Investment Research

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Zacks' Home Run Approach for an Unsettled Market

A declining market is actually the perfect time to jump in and buy stocks with great growth potential. Zacks' home run approach is currently riding a triple-digit gain in a tech stock and has now uncovered a company with good earnings history and an acceleration in its revenue growth rate. This afternoon, May 16, Zacks will reveal this fresh aggressive growth stock with exceptional profit opportunity in spite of today's market volatility.

Act now and you can be among the first to get in at the very beginning of its climb.

Get details now >>

Bull & Bear of the Day

Zacks Rank #1

Pioneer Energy (PES)

With the American energy boom in full swing this stock is blowing up.


Zacks Rank #5

Briggs & Stratton (BGG)

Earnings estimates for this company have been mowed down recently.

Stock Picking Strategies

PEG Ratio vs. the P/E Ratio  ››

Telecom Calling on New Technology  ››

Q1 Earnings Season Coming to an End  ››

Funds Commentary

Zacks #1 Ranked Energy Mutual Fund  ››

Inside the ETF That Uses Supply and Demand to Pick Stocks  ››

Time to Worry about Homebuilder ETFs?  ››

Options Strategies

Making Money With a Neutral-to-Bearish Outlook  ››

Video Reports

Top Momentum Stocks for May 7, 2014 (IQNT) (EXH)

Momentum Stock Strategist David Bartosiak discusses two stock ideas to look at during this market pullback.

MLP ETNs for Growth and Income

In addition to attractive yields, MLPs have solid growth potential (AMJ, MLPI).

Buy or Sell in May?

Zacks experts weigh in on whether investors should be buyers or sellers in this market.

Earnings HQ

Today's Noteworthy Earnings Before the Bell:   ››  CSTMCSIQPKECMGETNP

Today's Noteworthy Earnings After the Bell:   ››  No Significant Releases. Check calendar for specifics.

Get the First Calendar Made for Traders.

Visit the Zacks Earnings Calendar

Recent Earnings Winners

Company Symbol Reported Surprise %Price Chg
ALJ REGIONAL HLDGS ALJJ May 15 +0.11% +36.26%
VIPSHOP HOLDINGS LTD VIPS May 15 +0.25% +9.64%
BRAZIL FAST FDS BOBS May 14 +0.25% +6.94%
LGI HOMES INC LGIH May 15 +0.22% +6.32%
TIPTREE FINANCIAL CL A TIPT May 15 +0.14% +5.88%

See All »

Best Earnings ESP Stocks  

Company Symbol Consensus
Accurate Est.
Reports Zacks Rank ESP
SANDERSON FARMS SAFM 1.60 1.66 May 29 1 +3.75
LIONS GATE ETMT LGF 0.40 0.43 May 29 1 +7.50
INTUIT INC INTU 3.40 3.44 May 20 2 +1.18
SHIP FIN INTL SFL 0.31 0.42 May 29 2 +35.48
WILLIAMS-SONOMA WSM 0.44 0.46 May 21 2 +4.55
Don't trade these stocks until you have read the Zacks ESP Guide ?


What's Today's Top Rated Mutual Fund?

Use the Zacks' Mutual Fund Rank, a quantitative ratings system designed to help you find the best funds to beat the market. See which ones to buy, which to sell and track your favorite mutual fund family.

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