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It’s not uncommon for nascent market rallies to feature a lot of crosscurrents, and we’re seeing just that during the past few weeks—the action has been generally constructive, but the environment remains news-driven with lots of rotation among stocks and sectors on a day-to-day basis. That said, because of the resilience of the major indexes and the strength (or set-ups) seen from leading stocks, we think you should continue to “lean bullish,” which means doing some buying as opportunities arise, but not pushing the accelerator to the floor. If this rally is the real deal, we expect more and more stocks from a variety of sectors to begin lifting off from multi-week launching pads. It’s something to watch for.

This week’s list is another mixed bag, with many turnaround situations and a few true growth plays. Our favorite of the week is Trimble Navigation (TRMB), an under-the-radar story with solid growth and a powerful stock.

Stock Name	Price	Buy Range	Loss Limit
Trimble Navigation (TRMB)	0.00	55-59	-
PVH Corp. (PVH)	0.00	105-110	-
Melco Crown (MPEL)	0.00	14.5-16	-
Gulfport Energy (GPOR)	0.00	36.5-38	-
Eastman Chemical (EMN)	0.00	61-64	-
Computer Sciences (CSC)	0.00	37.5-39	-
Salesforce.com (CRM)	0.00	162-169	-
Cree, Inc. (CREE)	67.96	32-33	-
Abercrombie & Fitch (ANF)	15.37	43-45	-
Aecom Technology (ACM)	0.00	22.5-23.5	-

The market’s rally continues to impress, with the major indexes building on their gains and more individual stocks acting well. At this time, our indicators are this close to turning positive; we’ll officially leave our Market Monitor in neutral territory, but if you see a good opportunity, it’s OK to take it. We are growing more encouraged that the market’s two-month correction is over, but we need to see more power among potential leaders; it’s really the one missing ingredient in the market’s nascent rally.

This week’s list is a mixed bag of growth stories and sectors, but there are a few that have us interested. Our favorite of the week is a well-known company that most investors now dislike. It’s Facebook (FB), the social media giant, whose stock is one of the few that has shown great power during the past three weeks. Try to buy on weakness.

Stock Name	Price	Buy Range	Loss Limit
Ulta Beauty (ULTA)	331.95	96-100	-
Stratasys (SSYS)	0.00	69-72	-
Martin Marietta Materials (MLM)	261.52	86-89	-
Gulfport Energy (GPOR)	0.00	35-37	-
GameStop (GME)	0.00	24-26	-
Facebook, Inc. (FB)	0.00	25-27	-
eBay Inc. (EBAY)	0.00	51-53	-
Dillard’s (DDS)	0.00	87-89	-
Colfax (CFX)	0.00	37-38.5	-
Abercrombie & Fitch (ANF)	15.37	42-44	-

The market’s rally since its mid-November lows has proven durable enough to turn our intermediate-term indicators back into a bullish mode. (Our Market Monitor, shown to the left, has followed suit.) Granted, the buyers aren’t exactly flexing their muscle here, with plenty of choppy action as investors await word on the Fiscal Cliff. But there’s enough evidence that the sellers have left the building, seen in both the major indexes, which have refused to give back any gains of late, and in leading stocks, more and more of which are setting up. You shouldn’t head for the deep end yet, but putting some sidelined cash to work is advised.

This week’s list is a hodgepodge of stocks and sectors, with a handful of turnaround-type stories thrown in. Our favorite of the week is MasTec (MTZ), an off-the-radar name in the construction business. Growth is picking up, and the stock is acting excellently.

Stock Name	Price	Buy Range	Loss Limit
United Rentals, Inc. (URI)	0.00	40-42	-
Rackspace (RAX)	0.00	65-68	-
Rackspace (RAX)	0.00	65-68	-
MasTec, Inc. (MTZ)	66.65	22-24	-
Marathon Petroleum Corporation (MPC)	0.00	58-60	-
Louisiana-Pacific (LPX)	0.00	16.5-17.5	-
Lowe’s Companies (LOW)	98.15	33.5-34.5	-
First Solar (FSLR)	83.74	27-29	-
Canadian Pacific Railway (CP)	0.00	97-99	-
ASML Holding (ASML)	350.01	60-63	-
Amazon.com (AMZN)	2.00	244-252	-