Another Weak Monday

 | Sep 24, 2012 | 11:16 AM EDT  | Comments
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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.

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