CHICAGO, Oct. 27, 2011 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Lululemon Athletica (Nasdaq: LULU), IBM (NYSE: IBM), and Cummins (NYSE: CMI), AngloGold Ashanti (NYSE: AU) and Gold Fields (NYSE: GFI).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Wednesday's Analyst Blog:
S&P Chart: A Sucker's Rally?
Do the bulls really have control of this market? Wasn't Tuesday's big 2% pullback after hitting a wall at S&P 1,260 just further confirmation that this is a "sucker's rally" and the path of least resistance is now lower?
I don't think so. As I wrote in "Bulls Own Rest of 2011" last week, "I think we are going to 1,300 by year end. This conclusion is based on several factors, such as the seasonally strong period for equities that is just beginning, the flow of earnings report cards that prove the economy is fine, and the very near resolution of the European "doubt" problem."
Given this backdrop, equity portfolio managers are going to put money to work in the best place in town while "cash is still trash" and the global economic cycle still looks healthy.
And for those of us with a technical bent, like me, the map of the market is still very encouraging with two main points worth noting. First, the reversal bottom off of 1,075 was not only strong, it was followed by several robust days to the upside.
Second, the back and forth digestion of gains on European worries between 1,200 and 1,220 was impressive and healthy, forming a new base of support. The market told you it was "waiting to go higher." At least that's what it said to me.
"I Buy Dips"
Because this market has the strength and bullish participation by money managers to challenge 1,260 and then the 200-day moving average at 1,275, it's not much of a stretch to reach for the next outlandish target of 1,300 before year end.
Remember, markets always fool the most people. And very few have been prepared for this rally. Many will doubt it, either sitting on the sidelines or playing the short side. This will only add fuel to the fire as these investors scramble to get in, or cover.
So, as I wrote last week when I said my bumper sticker reads "I Buy Dips," use the sell-offs on European doubt and earnings misses to buy your favorite strong stocks. On this morning's Euro-doubt dip, I profiled 3 ideas for you: Lululemon Athletica (Nasdaq: LULU), IBM (NYSE: IBM), and Cummins (NYSE: CMI).
This should also be a good environment for gold and gold stocks too. I will take a look at some of them tomorrow, especially AngloGold Ashanti (NYSE: AU) and Gold Fields (NYSE: GFI).
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com
SOURCE Zacks Investment Research, Inc.
Share this article