CHICAGO, Feb. 15, 2011 /PRNewswire/ -- Zacks highlights commentary from People and Picks Trader "inthemoneystocks".
For more Voice of the People, visit http://at.zacks.com/?id=5851
Alert: Rinse and Repeat to Profits
Rewind and replay which is the motto of the stock market each day. Stocks like Exxon Mobil Corporation (NYSE: XOM) gap lower, only to have the buy programs hit via the Federal Reserve's POMO QE-2. These stocks then move higher, minute after minute, keeping the markets floating in the neutral to positive direction. You can look back at XOM each of the last few days.
This is a repeating pattern. XOM will gap lower, then go on a major move higher, keeping the markets from collapsing. Remember, XOM is the largest market cap stock and a major player in the Dow Jones Industrial Average which is made up of only 30 stocks. It is becoming somewhat of a joke between seasoned intelligent traders who are making money hand over fist as they play the Federal Reserve's POMO each day.
"Buy the dip!" everyone screams. As of now, the markets are a casino and everyone is being paid out.
While Exxon Mobil is the most obvious case of propping, other stocks see it as well. Chevron Corporation (NYSE: CVX), a close relative, sees it almost as much as XOM as does International Business Machines Corp. (IBM). The joke continues to be something to laugh at but also profit off of.
Use it until you lose it, is the motto now. This means: play the Federal Reserve's propping until it stops working. When they can print money non-stop, it makes for a positive bias for the markets, especially when the volume remains so low.
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
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Contact: Brent Billock
People & Picks Manager
SOURCE Zacks Investment Research, Inc.