Ignore the Shrill Top Calls

 | Jan 17, 2013 | 10:36 AM EST  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

cvrr

,

FF

,

dnr

There is no shortage of commentators calling for the demise of this market, but here it is hitting intraday highs following a poor Philly Fed number. I will repeat what I've written so often lately: Don't turn bearish until there is price action to support that position. It is a mistake to keep trying to anticipate a top.

Breadth is very strong at better than 3 to 1 positive and there's good action in chips, homebuilders, retail and a number of other groups. There isn't any standout momentum, but Apple (AAPL) is back in the green and buyers are obviously anxious about missing more upside.

Even if you stay bullish, like I am, it isn't that easy to trade this market. The buying is steady but slow and it is not easy to be aggressive with buys. I definitely would like to put more money to work.

I took an initial position in the debut of CVR Refining (CVRR), a stock that pays a substantial dividend, and I'll be looking to add to it. FutureFuel (FF) is a chemical name that I like due to good increase in volume. It needs a few more ticks to trigger my buy point. Denbury Resources (DNR), which I mentioned as a chase, continues to inch up but I'm struggling to find much new. I'll keep looking and try to ignore the increasingly shrill top calls.

Columnist Conversations

Using this year's estimate to make a P/E is pretty standard. Basing a multiple on 2015's projected EPS is not ...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

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.