Cytec Industries

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Nearest Resistance: N/A

Nearest Support: $62.50

Catalyst: Acquisition

Last up today is Cytec Industries ( CYT), a specialty plastics maker that's getting search attention after announcing that it was planning to acquire UK aircraft component maker Umeco. Shares of CYT are rallying more than 12.5% on news of the acquisition, making a new 52-week high for the stock. Making new highs is significant from an investor psychology standpoint because it means that everyone who has bought shares in the last year is sitting on gains - as a result, the "back to even" mentality is less of a concern than it would be for a name with a higher proportion of shareholders sitting on losses.

For late-to-the-game buyers, though, I'd recommend sitting on the sidelines until CYT pushes above today's high water mark.

Cytec shows up on a list of Materials Stocks Bought and Sold by Hedge Funds for the most recently reported quarter.

To see these stocks in action, check out the at Most-Searched Stocks portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

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At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji is the editor and portfolio manager of the Rhino Stock Report, a free investment advisory that returned 15% in 2008. He is a contributor to numerous financial outlets, including Forbes and Investopedia, and has been featured in Investor's Business Daily, in Consumer's Digest and on MSNBC.com.

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