The Ride Continues

 | Feb 01, 2012 | 10:57 AM EST
  • Comment
  • Print Print
  • Print
Stock quotes in this article:










The one-way ride the market enjoyed in January continues as we kick off a new month. There was a brief attempt to fade the gap-up open on mixed economic data, but the dip-buyers aren't even waiting for the dip before jumping in. They have had so much success buying any and all weakness that they are becoming even more aggressive.

Breadth is extremely strong with about 4250 gainers to just 880 decliners. All major sectors are up. Bonds are under pressure, which may be a sign that some rotation is taking place. 

There is plenty of Facebook chatter but it looks like that trade is now over for aggressive traders. All the Facebook plays, such as b (ZNGA), Renren (RENN), GSV Capital (GSVC) and Firsthand Technology Value Fund (SVVC), have fizzled out. I suspect that they will be active again once we are closer to the actual pricing of Facebook shares. The actual filing for the initial public offering is already old news and simply provides something for the media to make noise about.

The biggest challenge continues to be putting new money to work. Stocks are acting well but continue to be extended on lighter volume. You have to chase if you want in, and the risk of being caught in a reversal are high.

I have my eye on Akorn (AKRX), which I mentioned Tuesday, for a breakout move and have a variety of smaller plays open, but nothing very sizable.

I wonder if the first day of a new month combined with the Facebook hype is creating blow-off top conditions, but I do not intend to try to call a top in this market.

Columnist Conversations

Foot Locker's (FL) less than expected quarterly earnings set off a round of selling the entire athletic appare...
View Chart »  View in New Window » Gold has met the first upside target off the last setup zon...



News Breaks

Powered by


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.