Better Action, but Not Perfect

 | Oct 24, 2011 | 10:28 AM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

aapl

,

bidu

,

mrge

,

auth

,

tklc

Friday's upbeat mood continues as market players remain optimistic about positive news out of Europe. Too many folks were caught underinvested last week and now they are struggling to gain long exposure. The fear that the market will continue to run without them creates major performance anxiety.

We have very good early breadth as stocks remain tightly correlated. Oil, steel, coal, gold and banks are leading while only pharmaceuticals are exhibiting weakness. Big-cap technology names look better as Apple (AAPL) and Baidu (BIDU) regain their footing.

I see some good-looking small-cap charts, but they aren't working as well as I'd hoped. For example, Merge Healthcare (MRGE) looks very attractive as it breaks above $7 on very good early volume, but it isn't running the way I'd expect when a stock shows up on the momentum screen.

AuthenTec (AUTH) is another low-priced stock that can't seem to gain any momentum, despite a great setup and a tie to Apple.

Tekelec (TKLC), which is my stock of the week, is up a bit, but like most of the other good charts, it isn't gaining any immediate momentum.

We have the risk of surprise news out of Europe, but I'm sticking with long trades and trying to put some money to work. I'd like to see the charts respond better, but at least there are some to choose from this morning.

Columnist Conversations

I stepped away this morning and we cracked. Yet so far there are fewer new lows on the NYSE thus far (than yes...
Ominous start to fourth quarter trading with second big down day in a row. Market disappointed as Draghi (rig...
An important part of the solar story is something called net metering. SCTY and VSLR say that if it goes away ...
A statistic I use to gauge intraday sentiment is the percentage of stocks trading above or beneath their sessi...

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.