Zacks.com Announces That Gregory Spear Highlights the Following Stocks: Captiva Software and Openwave Systems.
Highlights from the June 3rd Featured Expert column by Gregory Spear include:
Bear market rallies, which occur in the midst of a downtrending market, are unusually sharp and strong. They always spark hope that the bottom has arrived and a turnaround is now in progress. During bear market rallies we breathe a big sigh of relief, as though the bully has finally stopped twisting our arm. Moreover, during bear markets, pundits and brokers are continually reminding us that each dip is a great buying opportunity. There is always a point at which they are correct, and they take great satisfaction in that, ignoring the previous carnage.
Bull market rallies, on the other hand, feel completely different: they climb a wall of worry. In other words, they seem improbable. At times, the market rallies much further than one would expect in spite of potentially troubling issues. Small amounts of good news seem to produce extraordinary results. At other times, the market seems to just drift higher for no apparent reason. The steady creep eventually amounts to a significant advance over weeks and months, yet few celebrate the rally. When stocks 'should' pullback, for technical reasons such as being overbought, significant selling pressure simply does not materialize. Then, suddenly the market drops quickly, but soon a steady recovery begins, as there is little follow-through to the initial wave of selling.
Those quick dips typically take the market down to one of the important moving averages (the 8-, 20- or 50-day moving average, for example) depending on the amount of momentum. In fact, that's how we measure the underlying momentum, by the depth of the dips. A market that retraces a large proportion of every little advance as it stair-steps higher has weak momentum, whereas, a market that forms a tighter pattern with little retracement has strong momentum.
Spear and his team are profiling Captiva Software (NASDAQ:CPTV) and Openwave Systems (NASDAQ:OPWV) in today's weekly edition. CPTV is a niche software player with excellent fundamentals. OPWV is a play on Microsoft's entry into the mobile phone market and a short-squeeze. Both rallied strongly on Thursday (6/2) and Spear recommends waiting for a pullback.
Read Gregory Spear's entire commentary and check his commentaries on a daily basis by clicking: http://at.zacks.com/?id=85
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