Strong ISM Numbers Sparks Momentum

 | May 01, 2012 | 11:07 AM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

aapl

,

nq

,

velt

The first real positive economic news in a while caught market players by surprise and now we are seeing a chase/squeeze kick in. After the disappointing Chicago PMI number the other day, many anticipated that the ISM, which is a similar measure, would be soft as well. Not only was the ISM number strong, but every aspect of it was positive.

After the lethargic action yesterday, many traders weren't well positioned for a sudden spike. Instead, they have to chase and cover shorts and that tends to feed on itself and send the market higher. Breadth is running better than 3-to-1 positives. Solar energy and chips are leading, while gold is the laggard. There isn't any really outstanding sector strength, but it is obvious that there is sudden anxiety over being underinvested.

My main charting program is down this morning, which has really handicapped my trading. I'm inclined to take some Apple (AAPL), which I think will continue to run now that there is a spark of momentum.

NetQin Mobile (NQ), my stock of the week, has a great looking chart and needs to shake a persistent seller. I'm also looking to add back to another recent favorite, Velti (VELT), which is involved in smartphone advertising and is looking to grow earnings 48% to $0.74 this year and to $1.01 in 2013. This stock is turning back up and I'm looking for its momentum to build.

Editor's Links

More from James "Rev Shark" DePorre:

Columnist Conversations

GS has cleared the important hurdle on the way up which increases the odds for an eventual rally towards the 1...
A good quarterly report has sent shares of Calamos Asset Management (CLMS) sharply higher. CLMS was up about ...
Electronics distributor Ingram Micro (IM) reported better than 16% growth in its Q3 sending the stock up about...
Market posting decent day considering Ebola getting headlines again. Believe investors have learned not to pa...

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.