Out of Position

 | Nov 11, 2011 | 10:51 AM EST  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

aapl

,

ftk

,

simo

,

cjes

,

alj

,

redf

,

sify

Once again, market players are out of position for strength and are scrambling to add long exposure as this market refuses to let them in easily. 

On Wednesday, some folks were convinced that a major change in market character was kicking in as Italy bond yields jumped higher. Many commentators were predicting that the next phase in the crisis was beginning and that it would be a slippery slope back down for the market.

What the bears overlooked was that way too many market players missed out on the October rally and were still very underinvested. They are anxious to rack up some performance before the end of the year and are looking for pullbacks they can buy aggressive. When the pullbacks only last a day they start to panic and chase strength.

With the exception of Apple (AAPL) it is a sea of green this morning. Once again we have very highly correlated action with NYSE breadth hitting 10 to 1 positive.  All major sectors are green with oil, steel, retail and banks leading. Gold has come back also as the dollar weakens against the euro.

I'm one of those underinvested bulls myself and am not having an easy time putting money to work. I added to a position in Simo Motion Technologies (SIMO). Web.com Group (WWWW) is still one of my favorites after its strong report. I continue to like Flotek Industries (FTK) and C&J Energy Services (CJES) in the oil sector and added Alon USA Energy (ALJ) in that group. Indian Internet plays Rediff.com (REDF) and Sify Technologies (SIFY) are on my radar. Opko Health (OPK) is an interesting setup after an upgrade this morning.

I'd like to get more going but small-caps are staying volatile and not making it easy.   If we test the day lows the selling will likely pick up fast but for now the main focus continues to be trying to find some additional long exposure.

Columnist Conversations

Tim C., GDXJ certainly ranks high in the "buy low" department, but I think that's about it. The relative perf...
While Google (GOOG) has moved in sympathy with the overall market's "V" recovery rally off of last week's low,...
Just got off this interview for TheStreet with Dunkin Donuts' CEO. Interesting stuff learned. Big takeaway: t...
Big spread in the small cap index. With RUT up 22.40 to 1111.90, the expiring Weekly (10/24)1140-1160 call spr...

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.