Slow Bounce Continues to Improve

 | Jan 17, 2018 | 2:13 PM EST
  • Comment
  • Print Print
  • Print
Stock quotes in this article:














The bounce started slowly this morning but it has been improving all day. The DJIA has been leading primarily due to strength in IBM (IBM) on a two-level upgrade but the S&P500 and Nasdaq are catching up on news that Apple (AAPL) will be paying $38 billion to the U.S. to repatriate its overseas cash hoard, and will contribut more than $350 billion to the U.S. economy, creating more than 20,000 jobs in the next five years. Those are pretty remarkable numbers and AAPL is shrugging off some lackluster analyst comments as a result.

Many bears have been questioning this market rally for a while but those numbers from Apple are giving the bulls good reason to stay positive. This tax bill has had a major impact on corporate earnings and it is very likely we will hear very positive comments in the next three weeks on first-quarter earnings calls.

Yesterday's selloff is looking like just another one-and-done event. Anyone betting on downside follow through is providing some short covering fuel today. As I have said so often -- strong markets stay sticky to the upside. They don't just fall apart.

The selling yesterday was quite beneficial as it helps to sort out some of the better setups. I see a number of little stocks like UTSarcom (UTSI) , Genco Shipping (GNK) , Phoenix New Media (FENG) , Sanchez Energy (SN) and Apptio (APTI) which pulled back, found support and are now turning back up.

There are going to be some good plays in many stocks on optimism into earnings. The buy-the-dip routine may be getting old but it going to keep working as we move into earnings season.

Columnist Conversations

In GS I see key price support at the 224.49-226.42 area.  I also have timing for a possible low.  I ...
Tesla (TSLA) has tested our long-term bounce zone @ 283.90-258.95 a few times. These have been BUYING opportun...
We have a big winner here, let's roll it up to a higher strike   SOLD SRPT NOV 140 CALL AT 26 (in ...
We still like this name and want to give it more time. SOLD AAPL OCT 220 CALL AT 6.9 (in at 10) BOUGHT A...



News Breaks

Powered by


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

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.

FactSet 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.