These stocks have soared over 1,000% in the bull market

From the depths of despair in March 2009 when stocks were plumbing multiyear lows, the S&P 500 index SPX, +0.33%  has risen like a phoenix to rally roughly 250% in eight years.

Of the 500 stocks that make up the large-cap index, a little over 400 stocks have doubled in value since 2009. Among those, 40 have surged 1,000% or more, meaning that for every $100 invested in any of those shares, the returns today would translate to $1,000 at minimum.

But even those numbers pale when compared with the 10 best-performing stocks in the S&P 500, which have all logged at least a 2,000% surge.

At the top, in a stratosphere of its own, is GGP Inc. GGP, +0.57% a real-estate investment trust, which skyrocketed 7,723% as of Friday. GGP is a prime example of making the podium because it succeeded in digging its way out from rock bottom. GGP, then known as General Growth Properties, traded at record lows, sinking to 25 cents a share on March 6, 2009. before staging its stupendous comeback.

Related: 10 best, 10 worst stocks in the eight-year bull market

Incyte Corp. INCY, +1.18% a biopharmaceutical company which soared 6,633% in eight years, also made the winner’s circle because its shares had been in free fall before it rebounded.

To some extent, the stock’s success is mirrored by the 412% jump in the Nasdaq Biotechnology Index NBI, +0.68% making the index the second best performer after Nasdaq-100 NDX, +0.41%

Dow Jones Data Group

Many analysts have said this current bull market is, to a large degree, a product of the Federal Reserve’s quantitative easing program in the wake of the 2008 financial crisis. As the Fed prepares to withdraw its support for the market and further tighten monetary policy as early as next week, market watchers are left wondering where the market will be a year from now.

By Sue Chang

Source:http://www.marketwatch.com/story/these-stocks-have-soared-over-1000-in-the-bull-market-2017-03-10

We Hit Dow 20K, Now What?

How to play the market now that the DJIA has finally crossed 20,000.

Tuesday's surprising market strength set the stage for the Dow industrials to finally take out the 20,000 level at Wednesday's opening. It's annoying to see so much discussion about a technical level that has no real technical or fundamental importance, but Dow 20,000 is clearly psychologically important given how much attention that it's been given.

The bears, of course, are looking for this event to produce a "sell the news" reaction, but they've been consistently wrong about how the market will react to recent events. A "Failure of the 20,000 Level" trade seems like another painfully obvious setup that might not work

 

Market players have been waiting for some sustained momentum since mid-December, and now they're chasing and repositioning in hopes of taking advantage. There was a large group looking for a downside resolution of the trading range, and now they're helping to fuel the market's upside move as they adjust.

One thing that's important to keep in mind as you contemplate this action is that moves like this create underlying support. There are many more market players that will want to buy a dip because they see the chances of sustained upside being much greater. The dilemma of this sort of action is that stocks quickly become extended, while the entry points are tougher. Many traders don't like to buy stocks at highs, but will be quick to buy any dips that develop.

I'm looking for some new buys and trying to stay with my positions that are working. The Alibaba (BABA) trade that I discussed yesterday is working well, and there's follow-through in optical names like Oclaro (OCLR) and AXT (AXTI) . Western Digital (WDC) is also a good example of some of the momentum that we're seeing in select technology names. Miners are a bit weaker but bounced back, while Teck Resources (TECK) -- my Stock of the Week -- is consolidating after a big move.

However, one group that hasn't participated lately is drugs/biotechnology. There's fear that the Trump administration is going to put in drug-price controls, which is keeping buyers sidelined. The market has punished the whole group, but there might be some opportunities developing in those stocks that don't have major pricing issue. One such name on my radar is Aratana Therapeutics (PETX) , which makes drugs for animals. It seems to have good support developing.

Markets that are acting like this tend to stay sticky to the upside. Don't be in a big rush to "fade the strength."

At the time of publication, Rev Shark was long BABA, OCLR, AXTI, WDC, TECK and PETX, although positions may change at any time.

By Rev Shark

Source: https://www.thestreet.com/story/13966440/1/we-hit-dow-20k-now-what.html