All You Need Is Churn

 | Jan 04, 2013 | 11:08 AM EST  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:




The market is holding up well following solid jobs numbers and a better-than-expect ISM services report, but random and poor action in Apple (AAPL) is keeping things suppressed. Small-caps continue to perform well, which is why breadth is running almost 2 to 1 positive on the Nasdaq. Biotechnology, oil, solar, builders and bulk shipping are leading while gold, silver, chips and coal lag.

After the run of the past few days, churning action is exactly what we need. Stocks need to consolidate and let the flippers exit. Many fund managers refuse to chase, and action like this allows them to inch in and give stocks better support.

I know some bears are anxious to put on shorts, but one of my resolutions for the new year is not go to the short side until I see actual weakness. It has consistently been a mistake when I try to be anticipatory about calling market turns. I want the market to show real selling pressure before I take a more bearish stance.

I continue to dig for places to put some cash. This morning I've been trading Uni-Pixel (UNXL), which I've mentioned before, and I put small oil play, Halcon Resources (HK), in the Sharkfolio. I continue to be very selective and have plenty of cash on hand.

Columnist Conversations

Reports on Tuesday. I am getting a little concerned on how the 2015 guidance will come in.
Soz doing some more good stuff on retail today-- I loved the JCP piece.. Remember you can follow a writer now ...
Despite a big upgrade from Credit Suisse(from Neutral to Outperform)FDX is relatively flat today. The st...
The Market Vectors Gold Miners ETF (GDX) chart continues to exhibit characteristics of a classic cup-and-handl...



Columnist Tweets


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.