The Day Ahead: Beware of Paper Champions

It kind of hurt me to hear Clubber Lang call Rocky a "paper champion" in Rocky III. After all, I witnessed America's champ endure all those bloody battles with Apollo Creed in his rise to relevance. I indirectly felt every nose-breaking jab to the face. In my eyes, the Italian Stallion was most certainly not a paper champion -- that is, a superstar who has gotten there by triumphing over unimpressive opponents. The idea is that this person essentially stays on top amid a consistent stream of weak challengers, and the real threats to the throne are kept at bay until some future date.

But I do humbly advise you to beware of "paper champion stock rallies." These one- or two-day advances in the market have the following characteristics....703 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.