Another Weak Monday

 | Sep 24, 2012 | 11:16 AM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

srpt

,

elli

The streak of weak Mondays continues. It is a sloppy morning of selling so far, but there are some signs of dip-buying and breadth is only slightly negative. Banks are exhibiting some relative strength and Apple (AAPL) is off its early lows, but there is a good dose of profiting-taking as well.

For months, the market has done a nice job of shaking off this sort of selling pressure. The bears have been incapable of building any downside momentum, which has given the dip-buyers confidence. Once there's a bounce, the bears almost immediately capitulate and the market starts running higher as short covering kicks in and the underinvested bulls start chase.

A weak close after a weak start would change the character of the action a bit, but so far, the market is walking back up steadily and looking to close the gap.

I've been managing positions closely and I took a few stops, but I'm also looking to buy some of my favorites. Sarepta (SRPT) has some data coming in a week or so and I expect it to run higher on expectations of good results. Technically, it is in a solid base and has good support. I'm adding on pullbacks.

Ellie Mae (ELLI) is my stock of the week. It is the leader in software for mortgage origination and the stock has been trying to turn up. I'd like to see better volume and a move through $30, but it is acting well and I'm adding slowly.

Columnist Conversations

Is this the biotech revolution or the biotech bust? View Small Cap Biotechs Like Never Before: Transparency is...
Lang:
Last year saw the MC NYSE oscillator hit -300 on about five occasions, and each time a massive bounce ensued. ...
If you are in the NYC area, Bob Lang and I will be in town this Monday and Tuesday night. We'd love to grab a ...
There are no signals in IWM....Still watching zone 2 in WYNN for a potential entry. The updated chart is below...

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.