Back to top

View the PFP Archive

Profit from the Pros

Buy The Dips

Shaky start to the markets yesterday as the major indexes pulled back from their highs.

After opening higher in the morning, the markets just kind of ran out of steam as profit taking set in.

Quite frankly, I'm fine with that. From a technical perspective, the Dow, the S&P, and the Nasdaq, all left gaps on their charts from Friday's higher open and close. These types of 'common gaps' often need to get filled before the market can proceed meaningfully higher.

Granted, 'breakaway gaps' and 'runaway gaps' don't subscribe to this theory. And if the gaps left behind are any of those, even better. But Friday's gaps look to be common gaps indeed. And a modest retracement to fill those gaps in would only serve to strengthen the technical picture as the market waits for more earnings to come in this week.

After six weeks of fantastic gains, a little backfilling and profit taking is not out of order.

But with over 1,200 companies reporting earnings this week, I don't expect the market to sit idle for long.

Dips have been far and few between. So in this bull market, I'm a big proponent of buying the dips when they present themselves.

See you tomorrow,

Kevin Matras

Executive Vice President, Zacks Investment Research


Today, See Zacks' Top Stocks for Free

Starting now, you can get instant access to the latest picks from our hottest market-beating strategies. From 2016 through Q2 2017, they soared +90.3%, +95.1%, +121.9%, +156.0%, and +182.1%.

Zacks will also give you a free Special Report, Top 10 Stock Screening Strategies with formulas you can use to find high-potential gainers anytime you please.

See Stocks Free >>

Most Popular Articles from

5 Best Stocks with Impressive Sales Growth to Buy Right Now

Sales growth is an important indicator of a company's health and ability to sustain its business. Read More »

Zacks Industry Rank Analysis - Time for a Software Upgrade?

The active Info Tech niche is currently ranked #21 out of 265 industries. That is in the top 8%. The YTD 2017 return is a superb +28%. Read More »

5 of the Best Retail Stocks to Buy Ahead of Q3 Earnings

As we gear up for the holiday season, we have selected five solid retail stocks that are poised to report earnings beats in the weeks ahead. Read More »

Looking for Value in a Bull Market

Finding these stocks in a bull market can be tricky since valuations are generally on the high side. Read More »

Earnings Season Takes Center Stage: Global Week Ahead

In the Global Week Ahead, earnings risks and opportunities multiply as 180 firms inside the S&P500 large-cap index release their latest third quarter results. Read More »


Start Every Day Ahead of Wall Street

Before you make a trade, get today's market news from Zacks' latest Ahead of Wall Street article. With timely information from Zacks' analysts, each daily article features a preview of where the market is headed. Plus, Zacks #1s on the move, stock research reports, earnings and economic news, and a top-headline analyst blog. All of it in one easy-to-follow place to give you the edge.

Get the latest news >>

Bull of the Day: Adobe (ADBE)

Just when investors thought they shouldn't pay 30X for this growth, they'll now pay 35X for the premier embedded digital studio. Read More »

New Zacks Strong Buys for October 24th

Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. Read More »

Customize Your Profit from the Pros Delivery
Connect with Us:
Contact Info:

Phone: 1.800.767.3771 ext. 9339