Maintain Discipline

 | Jun 19, 2012 | 10:32 AM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:










The market is exhibiting solid follow-through momentum this morning, with the hot money actively chasing a number of things. The obvious driving force is a potential quantitative easing announcement from the Federal Reserve Wednesday. Market players are keenly aware of how the Fed can drive the market with this news, and they want to make sure they have some long exposure. But there is no guarantee the Fed will act and I suspect a little nervousness before the announcement.

It is nice to see momentum stocks moving like they should during uptrends. Names like Sourcefire (FIRE), SXC Health Solutions (SXCI), Group (WWWW) and Pharmacyclics (PCYC) have been attracting attention, however, the king, Apple (AAPL), is down and I've cut my position.

Although the action has been strong, I've been a net seller and haven't made any notable new buys. I'm looking for at least one bout of profit taking prior to the Fed announcement, as conservative traders lock in gains and remove the risk that the Fed may not announce QE3. Meanwhile, maintain discipline.

Columnist Conversations

Ford continues to underwhelm. The stock has been in a steady drift lower since its March 23rd high. This...
This past week, 10-year YIELD broke and sustained below key support at 2.18% - 2.15%, and has continued lower ...
Eli Lilly is trading at new 52 week highs today. The drug manufacturer is up over 3.25% and is near the to...
On May 15 and 18 I mentioned here about adding some Jun 29 calls, our price was 1.75. The chart was outstandi...



Columnist Tweets


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.