Embrace the Chase

 | Aug 17, 2012 | 11:10 AM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

aapl

,

goog

,

hd

,

kors

,

mlnx

,

oplk

,

pfmt

,

elli

,

fran

Stock Market, Investment StrategyThe indices aren't doing much but a number of high-relative-strength stocks continue to attract momentum players. Names such as Apple (AAPL), Google (GOOG), Home Depot (HD), Kors (KORS), Mellanox (MLNX), Ellie Mae (ELLI) and Francesca's Holdings (FRAN) are running while the market flops around on even breadth.

I suspect that there is a fair amount of performance anxiety after yesterday, and that is causing traders to chase the high beta names in hopes of catching up. Many of these are very extended, but chasing the big movers is what is working best.

As I noted in my opening post, markets like this that are close to their highs tend to be pretty sticky. They may pull back a bit but they don't suddenly collapse. It is very easy to be too cautious too quickly in this environment.

I'm embracing the chasing theme and bought Oplink (OPLK) and KORS this morning. My Stock of the Week, Performant Financial (PFMT), continues to look promising and I may add that as it challenges its high.

Columnist Conversations

The visualization of data is provided by Capital Market Laboratories (CML). Z is trading $115.95, down 2.8% w...
We are still seeing WYNN hold up above key WEEKLY support here, but I do want to show you what is in the way o...
Market moving down in last hour as dollar continues to strengthen against major currencies, commodity prices a...
The daily chart of Regeneron Phamaceuticals (REGN) shows Bollinger bandwidth contraction at a reading that, i...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

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.