Zacks' Voice of the People Highlights Opportunities With Bank of America Corp, Amazon, Citrix Systems and Rackspace Hosting.

Aug 09, 2011, 13:23 ET from Zacks Investment Research, Inc.

CHICAGO, Aug. 9, 2011 /PRNewswire/ -- Zacks highlights commentary from People and Picks Trader "inthemoneystocks".

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

For more Voice of the People, visit http://at.zacks.com/?id=5851

As Oversold As We Have Seen It

There is nothing but selling taking place at this time. Stocks are being sold with a vengeance. This tells us that there are a few large financial institutions that have been caught on the wrong side of this market. In the past, when a major hedge fund or prop desk was under water on a position the other big fish will press there short side bet and drive the nail in the coffin for the struggling firm.

We can only wonder who is caught on the wrong side of Bank of America Corp. (NYSE: BAC) at this time. This stock has plummeted lower today by more than 15.0 percent. The rumors are circulating throughout Wall Street that some whale is caught on the wrong side of the tape. This is likely to be what is taking place at this time.

On the flip side, these markets are extremely oversold and extended. This market can certainly go lower over the course of the year, however, in the short term this market is due for some kind of significant bounce in the near term. There are so many stocks that have been decimated over the past two weeks. Many of these stocks are trading around important support levels. Volume has also been massive and this is generally a sign that the selling could be getting close to subsiding.

Often traders and investors usually sell out at these levels when fear increases, however, this is when traders should begin to take small shots at long positions for bounces. Should a stock market bounce occur it may not last very long, although if and when a bounce does take place the short term bounce could be significant. As a good rule of thumb, if you are uncertain just stand aside. There will always be better trading environments.

Some stocks that look attractive at this time include Amazon.com Inc. (NASDAQ: AMZN), Citrix Systems Inc. (NASDAQ: CTXS) and Rackspace Hosting Inc. (NYSE: RAX). All of these stocks have pulled back into significant support levels. Traders must still be cautious at this time, if the major stock market indexes continue to break lower everything will trade down with the indexes.

About the Zacks Community

In 2008, Zacks Investment Research launched PeopleAndPicks.com, a stock-picking website where members of the Zacks community can test their strategies and share ideas with other members. Each user is scored on the accuracy of his or her picks, and top users are rewarded with free products from Zacks. Registration is free. To learn more about People And Picks, visit http://at.zacks.com/?id=5957

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3:1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit From the Pros by going to http://at.zacks.com/?id=5958.

Follow us on Twitter:  http://twitter.com/ZacksInvestment

Join us on Facebook:  http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts  

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact: Brent Billock
People & Picks Manager
Company: Zacks.com
Phone: 312-265-9307
Email: pandp@zacks.com
Visit: www.Zacks.com

SOURCE Zacks Investment Research, Inc.



RELATED LINKS

http://www.zacks.com