Chatter as a Positive Sign

 | Jun 06, 2014 | 2:09 PM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:


















You know what a good market feels like? When you keep hearing, "There must be something going on with that stock," and they are referring to something good, not bad.

For Action Alerts PLUS, we can't stop thinking that something is going on at Johnson Controls (JCI) and Yum! Brands (YUM). They are simply "too strong" for us to believe it is just the fundamentals. Could Johnson Controls be breaking up more, bringing out more value? Is Yum! Brands seeing a dramatic turn in China or in Taco Bell breakfast? What's going on?

I am hearing it with the airlines. Is it price increases? They can't just be levitating.

How about IBM (IBM)? Hearing activism.

Apache (APA) got a big downgrade today, and it's up. Isn't that a natural target, now that Egypt, which is so important, seems to have stabilized? How can Continental Resources (CLR) be so strong without thinking that Statoil (STO) is in there kicking the tires? How about Marathon Oil (MRO)? That's having a nice move up, a nice suspicious move. Are you hearing Publix (PUSH) for Whole Foods (WFM)? I am not kidding, I am.

These are all part and parcel with an excellent "tape," where all that is probably really happening is nothing. Just large buyers trying to find stock and having to reach for it because there's just not enough supply.

Of course, we know that there's a huge amount of M&A going on. We see it every weekend. And we know that the stocks of the acquirers keep rallying, so it makes sense that there would be so much chatter.

I just want to point out that when you get this kind of action, you can expect a ton of covering every Friday. Weekends are just too dangerous to be short.

Columnist Conversations

Now that AAPL has violated the shorter term support, these are the two areas I have to consider for new buy en...
The symmetry is holding up in MCD.  Target 1 is 163.34 if we continue to hold above here!  ...
As far as TSLA is concerned, I still have a higher target above the market at the 409 area.  I stated in ...
The TLT setup discussed in my last commentary is a bust. Key support was violated and it violated the recent l...



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.