Searching for Momentum

 | Mar 13, 2012 | 11:03 AM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

aapl

,

ibm

,

invn

,

jva

,

bks

,

cbrl

,

ckec

,

calm

,

FIO

,

cie

,

egy

,

hees

We have gap-up and churn action today as we await the Fed's FOMC interest rate decision. The tendency of the market intraday lately has been to have very strong underlying support and some dip-buying, but not a lot of upside momentum. We hold up extremely well, but other than a handful of big caps like Apple (AAPL) and IBM (IBM), there isn't much sustained strength.

The two biggest momentum movers on my radar today are InvenSense (INVN) and Coffee Holding Co. (JVA). That is very narrow, and we have strength in a very odd mix of stocks, including Barnes & Noble (BKS), Cracker Barrel (CBRL), Carmike Cinemas (CKEC), and Cal-Maine Foods (CALM). If there is a theme, I'm not sure what it is.

Obviously, with this big gap up this morning breadth is quite good with 3700 gainers to 1400 decliners. Gold and silver are lagging badly once again and retail is flat, but steel, banks and chips are driving the action.

We are hitting the highs of the day as the dip-buyers jump in and squeeze the top-callers. The pattern of dip-buying and squeezing overanxious bears is almost too obvious, but betting against it is not working.

As I keep repeating, if you are anxious to short, wait for weakness first and stop trying to time the exact moment we turn down. It might be an entertaining game and good for the ego when you eventually get it right, but it's an easy way to lose a boatload of money in the interim.

I have a few things on my radar including Fusion-io (FIO), Cobalt International Energy (CIE), Vaalco Energy (EGY) and H&E Equipment Services (HEES), but I'm not doing anything very aggressive. While the indices are strong, the momentum is lackadaisical.

_______

Editor's Links

More from James "Rev Shark" DePorre:

Columnist Conversations

Well this is confusing...our models were calling for a run to 2072 before a bearish reversal would be possible...
Revenue Trend Apple is one of the most remarkable companies in the world, not just because it has the largest...
HOG has topped out. The stock's twelve day winning streak is ending today with and ugly reversal. HOG o...
Seems like there was a bid underneath at the crucial 2:45 p.m. hour.. day saver? still not sure..

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.