For the straight second day there's a little nervousness in the early going. We shook it off yesterday and managed a strong finish, but today the market is lurking around the lows and that has the potential to trigger sell stops. Breadth is a bit weak and there isn't much leadership. Precious metals are up but it looks like a dead-cat bounce after the recent weak action.
As I discussed in my opening post, I'm focusing on stock-picking. We don't have much macro news and that should support the stock-pickers. It would help if the indices don't crack support, but I see a number of stocks of interest.
I remounted TASER International (TASR), which had a failed breakout on good order news and has pulled back to support. Halcon Resources (HK), which I added to the Sharkfolio the other day, is at a conference and attracting buying. Santarus (SNTS), which had good insider buys recently, is basing nicely near its highs and I'm watching for it to move out. Walter Investment Management (WAC) and Ocwen Financial (OCN) in the mortgage area are gaining traction.
One stock I'm particularly interested in is Perion Network (PERI). I mentioned the digital media company previously and pointed out its strong EPS growth. It pre-announced strong numbers this morning and I believe it will attract momentum chasers. The company guided higher for the fourth quarter and for 2013. It is projected to earn $1.57 per share, which should rise. At the current price of about $11.50, it's forward price-to-earnings ratio is around 7. The company is upbeat about its prospects, and I believe the stock is just starting to make a major move.
We just took out the day lows and I'm going to pull back a bit to wait for support to kick in. I'm not too concerned about this profit-taking but I'll tighten up.