Tough to Get Behind This Action

 | Nov 26, 2012 | 2:13 PM EST
  • Comment
  • Print Print
  • Print
Stock quotes in this article:






The market is suffering multiple personality disorder today. On one hand, we have around 2-to-1 negative breadth on the NYSE, with weakness in oil, retail, banks and homebuilders. On the other hand, we have Apple (AAPL) regaining its luster as the go-to name and then quite a bit of speculative action in low-priced China stocks and some junk names. Nasdaq breadth is close to even, and there are some pockets of momentum particularly in technology names.

The dilemma of this sort of action is that the technical negatives are quite evident. We had a classic oversold bounce on declining volume during the holiday week, and now we need to consolidate. Traders are anxious, however, to put some performance points on the boards, and they are chasing junk and are back on the Apple train. They may not be true believers, but they are going to keep pushing while they can.

Trying to put new funds to work here is not an easy task. Most of the strength is coming in names that were already extended, and given that the overall market action is mixed, it is tough to be too aggressive. A good example is Facebook (FB) which has been bouncing straight up but is heading into resistance as it fills the July gap. It looks like massive mis-positioning by overanxious shorts who thought the lockup would keep the pressure on the shares.

Nam Tai Electronics (NTE), my stock of the week, continues to perform well with a move to highs on good volume. That is the sort of action I expect to see in a healthy market, but there isn't too much of it to be found yet.

Columnist Conversations

As far as TSLA is concerned, I still have a higher target above the market at the 409 area.  I stated in ...
The TLT setup discussed in my last commentary is a bust. Key support was violated and it violated the recent l...
BBY is getting smoked this mornings(weak forecast).  The stock is off 8% after opening the session with a...



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.