Some Weakness Sets In

 | Sep 20, 2012 | 10:27 AM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:


This is the worst market action we've seen in some time. The major indices aren't even down 1% but breadth is better than 3-to-1 negative, and all major sectors are in the red. There has been no dip-buying interesting, and market players appear hesitant to rush in.

Since this is the first real pullback in a while, the psychology strongly favors some dip-buying. No one has been burned by buying weakness yet, and there is a very large group that has missed out recently and has been hoping for weakness to buy.

Dip-buying always sounds great in theory when stocks are strong, but it loses its appeal quickly when things start to breakdown and worry grows that maybe this is a top and not just a pause. Since this is the first pullback from highs, however, the chances of a total and sudden collapse are low. That doesn't mean throw caution to the wind, but don't be too quick to be aggressively bearish.

I've tightened up stops and made quick sales this morning, but I'm being opportunistic and looking for quick bounce plays. One speculative name I'm watching is Renewable Energy Group (REGI), which moved sharply early in the week and looks like it can attract attention again over $8.50.



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.