Market Wrap-Up for Sept.24 (FCX, BHP, BUCY, PCLN, NFLX, AAPL, more)

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The market is in classic "melt-up" mode here as we saw in late 1999. Traders are partying as if there is no risk with the high-beta names.

When you see investors chasing stocks on the basis that you can take a triple-digit stock, divide the stock price by 10 (the so-called "Rule of 10″), and you can see the shares are actually "cheap" from a valuation standpoint, you need to be very careful about the nature of your investing goals. As I mentioned yesterday during our Dividend.com "State of the Markets" webinar , you must use caution if you are going to attempt to play the momentum game. I am not saying you can not successfully be able to get in and out of shares, but human nature makes it tough to sell stocks, and even harder for most investors is selling stocks they are seeing a loss on.

If you are going to dabble in the hot commodity sector or chase momentum names like Priceline ( PCLN ), Netflix ( NFLX ), and Apple ( AAPL ), remember to use extreme discipline. Having been a full-time trader for many years, I can tell you that I see some dangerous situations developing for investors that are attempting to become traders suddenly. Pull up some charts of the momentum names I mentioned above and you will see big spikes in price gains. This is not the norm!

I am also getting concerned about the non-stop nature of the commodity sector leading all rallies - names like Freeport McMoran ( FCX ) , BHP Billiton ( BHP ) , Bucyrus International ( BUCY ) and others. The message of commodity inflation is certainly being sent loud and clear, and that is something we are assessing as we look at our Best Dividend Stocks list . We had added some yield plays to the list at the start of this week, and I continue to focus there as I look for more opportunities. The extremely low-yield momentum plays are not of any interest to me here, despite the run-up. I know how that movie ends.

As we look ahead to next week, we will see a trickle of earnings out from the likes of Walgreen Co. ( WAG ) , Family Dollar Stores ( FDO ) , and Accenture ( ACN ) . Be sure to catch up with our latest watchlist updates as well as the latest "Learn to Be Rich" articles as I attempt to bring the world of personal finance into an easy to understand format. I'd like everyone to gain the money knowledge they need to navigate through other parts of their financial life outside of investing.

Have a great weekend everybody and thanks for reading!

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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