Keeping the Balls in the Air

 | Jan 27, 2012 | 10:40 AM EST  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

stock market




investment strategy

Although the indices are red and struggling a little, the dip buyers are still lurking about and providing some underlying support. Dip buying support has been the predominant theme so far in 2012, so you can't help but wonder how much longer it will last.  

As Helene Meisler mentions in her column this morning, the market has had a tendency to become more and more overbought and then suffer a very sharp reversal as the underlying support suddenly disappears.

That is what I'm watching for at this juncture, but I'm still trying to knock out some quick long trades while the market holds reasonably steady. This morning I added some Raptor Pharmaceuticals (RPTP) and Zynga (ZNGA), but these are definitely shorter-term rentals that I don't plan to hold for long.

The juggling act in this environment is to respect the warning signs that are developing in the indices, while still trying to keep some trades going. To do that you have to keep your time frames very short and stay vigilant, but it beats trying to load up on shorts when the market refuses to back off.

Columnist Conversations

In an article on 7/21, I outlined a potential long trade in Zeltiq Aesthetics (ZLTQ). The downtrend line on th...
Upside call skew is looking rich relative to the cost of downside strikes in a number of widely-owned names in...
I had shorted a number of CH Robinson (CHRW) puts with 2015 and 2016 expiration dates back when the shares wer...
as of right now, 11am, with the Dow 30 at 16,855 means that the Dow 30 is up 1.60% for 2014.



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.