The market certainly had a good week, but bulls had to be a little dismayed by the late action on Friday. Just when things were turning REALLY bright, the market collapsed and the day was kind of sour.
But, this is to be expected when resistance is encountered, and bulls shouldn’t give up hope just yet. So far, it’s only a minor setback and from my experience, every time resistance is tested, it becomes weaker for the next attack.
When you talk about weak, you have to talk about Zynga (ZNGA). Oy, what a mess this stock has been, down over 80% from its peak. So is now the time to buy? This one is still dangerous, but you do have a huge selloff coupled with enormous volume. That’s what a blowoff low looks like, but if you venture in, do it CAREFULLY.
In trying to figure out a stock the “opposite” of ZNGA you could do worse than General Electric (GE). Old, stodgy, it’s a grandmother and orphans stock. (I own it, by the way, making me distinctly an old guy!)
But, it’s performed nicely and is something to have in your long-term portfolio. But, if you aren’t already in, I’d wait for a retreat before pouncing.
Gary B. Smith joined FOX News Channel in 1999 and is currently a regular commentator on "Bulls & Bears," including his own segment called, "The Chartman."