A Better Bounce

 | Feb 26, 2013 | 1:23 PM EST  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

lnkd

,

nflx

,

gv

,

snfca

Now that Ben Bernanke's testimony has concluded, there's better bounce action. But it hasn't been very impressive given the intensity of yesterday's selling. Markets that come down that fast and hard usually rebound strongly for at least a little while, but the bounce buyers have been hesitant.

The good news is that the market really needed the correction of the past week to get better trading setups. I'm not confident that this pullback is over, but I'm working on a shopping list and I will be looking for buys.

When you look for buys in this type of environment, leave plenty of room to add more and be sure to have an exit plan in case a stock doesn't develop how you hope. You will pay a very heavy price if you just keep averaging down within a downtrend. Make sure you have a plan to cut losses if things don't work.

I'm looking to add to positions in LinkedIn (LNKD) and Netflix (NFLX) and a couple of small-caps on my shopping list are Goldfield (GV) and Security National Financial (SNFCA).

It looks like the buyers are gaining momentum and if the early highs are taken out it should draw in more folks who don't want to miss a bounce.

Columnist Conversations

HP
Multiple downside targets have been met in HP....either trail stops down or book some profits or BOTH. ...
What an ugly short session for oil and energy related stocks. Think we get some sort of bounce on Monday when...
I saw a comment on JC's piece asking about a tariff on crude oil to protect the American industry and a respon...
Lang:
i was double-delighted to see Stephanie Link bullish on LULU but also a recent piece by Ed Ponsi reflecting th...

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.