The Strength Is Deceptive

 | Jul 13, 2012 | 11:28 AM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:








The indices look strong this morning and breadth is nearly 4-to-1 positive, but under the surface I'm not seeing the sort of frenzied buying those facts might suggest. In fact, I'm seeing quite a few fades, and key names like Apple (AAPL) don't seem to be gaining any traction.

Small biotechnology names continue to attract attention with stocks like Affymax (AFFY), Orexigen Therapeutics (OREX) and Medgenics (MDGN) running. Merck (MRK) is leading big-cap names, and homebuilders are probably the hottest group.

I suspect the main driving force today is hope in front of the big news events next week. The market is oversold enough to attract some technical buyers, and we know that any whispers of QE3 will ignite the bulls. Given Fed chief Ben Bernanke's tendency to be market friendly, there are plenty of folks willing to place bets today.

I don't have much new going on. Mellanox Technologies (MLNX) is one I've been trading. It has earnings next week and may run up in anticipation of a good report. My inventory levels remain low, but I just don't see much to add right now.

Columnist Conversations

As we look toward some of the clues that help guide our market outlook, there are some secondary sentiment ind...
I would pay attention to this one during the first hour of trading. I think the new CEO has lost all credibil...
Yum's getting ridiculous again because you have to wait for the call tomorrow and no one knows what will be sa...
My view is that the bulls have it wrong and that the preoccupation with the price momentum over the last two d...



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.