I'm not surprised that there's a gap up this morning after all the hyperventilation by the media about new highs on the DJIA. While it's producing a little profit taking by prudent traders, the action is mostly choppy and sloppy as market players figure out if we have the ability to run more without a little rest first.
I definitely wouldn't mind finding more buys but it looks like we are going to see consolidation first. I've made a few small sales, but I continue to like a number of stocks I've discussed lately, such as Goldfield (GV), StealthGas (GASS) and Sarepta (SRPT).
A new name I'm watching is NXP Semiconductors (NXPI), a Netherlands-based company that makes RF chips and other wireless technology. The company is expected to grow earnings 59% this year and 29% next year, but the stock sells at a trailing price-earnings ratio of just 19. Technically, it has been basing in the $31 to $33 area for about a month and is making a run at recent highs.
I'm finding stock picking increasingly difficult so I'm not forcing things and I'm keeping my stops tight. A little a pullback would not be bad at all.
