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.
