Trying to Put Money to Work

 | Jan 28, 2013 | 1:20 PM EST  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

ypf

I jumped the gun a little this morning in looking for the selling to pick up. The dip buyers jumped in and nearly had the market back in the green. Breadth is still running negative overall but it is positive on the Nasdaq.

The most worrisome thing about the action is that the momentum names are under pressure. For example, only 13 of the 50 stocks on the Investor's Business Daily list are positive, and my other lists of "hot stocks" are seeing nearly 2 to 1 negative breadth. A bounce in Apple (AAPL) is helping the indices but there is fair amount of weakness, which is a slight change in character.

I'm trying to put some money to work, but it sure isn't easy. One setup I like quite a bit is Argentinian oil and gas company YPF SA (YPF). It is expected to grow earnings 17% in 2013 to $3.44 and trades with a trailing price-to-earnings ratio of just 7. Technically, it has been basing around the $14.50 to $15.50 level for six weeks after a big move and it looks in good shape to move higher, especially if volume picks up.

I'm a little nervous about this market and wouldn't be surprised to see a weak close today. There is still underlying support, but it is weaker than it has been and a poor close would cause some people to rethink a few things.

Columnist Conversations

Lang:
Much of the run higher in gold over the last several years has been born of the skepticism over the Fed's gran...
CBI touched a 2014 peak of $89.22 and was much loved. Today it broke below $60 and nobody seems interested in ...
Many people had been complaining that there were not many stock market bargains to be had last week. When they...
NFLX is trading $440.66, down 3.7% with IV30™ up 22.3%. Conclusion I have written about NFLX extensivel...

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.