Watch for an Intraday Reversal

 | Dec 06, 2011 | 10:49 AM EST  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

pkt

,

meli

Underinvested bulls continue to provide underlying support, but upside momentum is sparse this morning. The longer we hold, the more likely it is that buyers will be more aggressive, but it's a gross understatement that this market could use a rest.

Breadth has come back from early weakness, but the only green sectors are chips and drugs so far. Financials and retailers are holding steady, which is probably the biggest positive. Gold is breaking support and looks precarious, and oil is seeing some profit-taking.

I've not been interested in the short side lately, but I'm watching carefully for some sort of intraday reversal. The chances of a bout of profit-taking are growing, and I'll be watching for signs of weakness after Europe closes.

I'm still looking for individual longs. I've added some shares of Procera Networks (PKT), which is breaking to a new high on good early volume. Unfortunately, the pockets of hot momentum stocks such as MercadoLibre (MELI) aren't there, even though the market is pushing to the highs of the day.

Columnist Conversations

The S&P 500 index finished the week unchanged, but the VIX was up 5%, the divergence sending a bit of a mi...
Weyerhaeuser has been struggling since testing the 2013 highs last month. The stock extended a powerful...
GLUU is trading $7.39, up 5.6% with IV30™ up 2.9%. Glu Mobile Inc. (Glu), markets and sells mobile gam...
Some negative sentiment in the market before the weekend. Some bellwethers like Amazon (AMZN) and Visa (V) ge...

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.