Upside Action but No Breakout

 | Aug 15, 2012 | 10:48 AM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:










We have bear-killing action to start the day as the premarket weakness sucked in some of the skeptics before spiking higher after the opening bell. There isn't any particularly news to account for the buying. I suspect it is due in large part to the old adage about not shorting a dull market. They don't get much duller than this one and we definitely have a "wall of worry" as well.

The problem with this action is that the upside isn't generating much momentum. It's a positive move but then it slows down and drifts. The buyers back off and we don't see any real breakout moves. With action like that, there isn't much choice but to take gains into strength.

Michael Kors (KORS) is working nicely as a follow-through momentum play. Sarepta (SRPT), which I've discussed lately, is up nicely on a news article. Performant Financial (PFMT), my Stock of the Week, is showing some life, and Nanosphere (NSPH) continues to attract interest.

A new position I added this morning is InvenSense (INVN). This was a momentum favorite early in the year and has recently been regaining its footing. It has an overweight recommendation today with a target of $20 from Evercore. I like the way it has been consolidating recently and started a position that I will add to on a move above $13.50.

Columnist Conversations

we like this chart here, it appears ready to move higher. BOUGHT BZUN OCT 35 CALL AT 3.40
Large-cap, high-quality McKesson (MCK) is too cheap now, at $147.51 or so. The stock hit $243.60 more than 2.5...
View Chart »  View in New Window » View Chart » 
Hug declines in Advance Auto Parts (AAP) and Dick's Sporting Goods (DKS) made for great chances to buy stock a...



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.