4 Top Techs in Buy Range
It's going to be a volatile market for a while but that doesn't mean investors have to sit on their hands observes Mike Cintolo of Cabot Market Letter.
The majority of potential investors are still paying more attention to the economic and political troubles of the world than they are to the stock market. Indeed, almost no one in the market is looking for really big gains today. We think they should.
But we’ve had a couple of rare signals of extreme market strength in recent weeks; the odds strongly favor higher prices ahead. Here's a look at some tech stocks we rate as buys: Amazon.com (AMZN), eBay (EBAY), Equinix (EQIX), and Facebook (FB).
As to the general market, we note that we have seen a rare Breadth Thrust; the broad market went from very oversold to very overbought in just a two-week period. Historically, that has portended great gains for the market in the months ahead (an average S&P 500 gain of 15% six months later)—and just as important to us, it has remained a rare occurrence. It was just the eighth signal in 32 years!
That was bullish enough, but then, on the heels of the fiscal cliff settlement, the market displayed another rare show of power: For two straight days, the total up volume on the NYSE outpaced total down volume by greater than 9:1.