Big-Cap Bonanza

 | Jan 20, 2012 | 1:39 PM EST  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:


















What we have today is a rotation out of small-cap and speculative names and into conservative big-cap names. Microsoft (MSFT), IBM (IBM) and Intel (INTC) are the main beneficiaries due to their earnings reports, but also Wal-Mart (WMT), Hewlett-Packard (HPQ) and McDonald's (MCD) are seeing buying action.

The bears are hopeful that this is some option expiration game, but the action has the feel of safe-haven buying. That can make the indices look good while many smaller stocks struggle under the surface.

It is probably premature to conclude that a major rotation is taking place, but I'm inclined to be more defensive with small-caps and maybe a bit aggressive with a short of the iShares Russell 2000 (IWM) exchange-traded fund.

One sector catching my eye is gold. The SPDR Gold Trust (GLD) has been consolidating in a narrow range between the 50- and 200-day simple moving averages and seems to have support building after the recent bounce. I'm not seeing any compelling charts, but Jaguar Mining (JAG) and Golden Minerals (AUMN) are on my radar.

Columnist Conversations

Darden Restaurant's (DRI) CFO sold 66,863 shares on March 24, 2015 for an average price of $69.68. Proceeds to...
We did not end up holding the pullback to the last time/price low in NFLX. I have run some new price relation...
The Biotech iShares (IBB) fund closed up nearly 2% on the day, but was down over 5% on the week. Today's volu...
Full on breakout for shares of CAG today. The earnings inspired ramp(+5.5%)has it in the number 3 spot o...



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.