Desire to Add Exposure Leads Indices Higher

 | Apr 25, 2017 | 10:33 AM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

cat

,

MC

,

dd

,

krnt

,

bwen

,

cala

,

tgtx

Bears and underinvested bulls were hoping that Monday's spike would fail to produce follow through today, but some good earnings news, positive talk about tax policy and the fact that many weren't well-positioned for the move is helping to create momentum this morning.

Like many other market players I was not well-positioned for the move yesterday, and now that the bulls are producing some solid momentum I need to add exposure. There are plenty of other folks in the same position and that is why we are seeing one-way action in the indices so far.

Breadth is 3 to 1 positive again and there are already about 750 stocks hitting new 12-month highs. The big-cap technology names are doing OK, but it's the big-cap Dow stocks that reported this morning that are leading. Caterpillar (CAT) , McDonald's (MC) D and DuPont (DD) are the leaders today, with small-caps doing well also.

I need to add some long inventory and am looking at names such as Kornit Digital (KRNT) , Broadwind (BWEN) , Calithera Bio (CALA) and TG Therapeutics (TGTX) .

Big-cap earnings plays are where the money is gravitating, but if this a real rally the strength should broaden out. The market has very good support now as buyers look for inventory. Don't be in a rush to fade this move.

Columnist Conversations

I recently highlighted WBA as one of the best values available in today's market. Walgreens ...
This trade is NOT for everyone (GE) came very close the 3/26 low @ 12.73 Gaps lower has been a recent daily e...
The support I needed to hold in XLB did not, so the trade is a bust......There may be some lower support at th...
British American Tobacco (BTI) is trading near multi-year lows, yielding 5.6% and about to ex-dividend on June...

BEST IDEAS

REAL MONEY'S BEST IDEAS

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.