Weekly Watch List


ALXN (7/24/11, +56.71%)
AAPL (4/29/12, -3.76%)
ULTA (4/8/12, -1.09%)
MNST (10/16/11, +61.30%)
DLTR (6/3/12, +6.78%)
DG (4/8/12, +6.50%)
TJX (3/25/12, +7.33%)
MA (9/24/11, +23.59%)
VRSK (6/10/12, +0.00%)

Additions:
VRSK (6/10/12, +0.00%)

Subtractions:
None

Last week, the major U.S. indexes booked impressive gains. The Nasdaq surged 4.0%, the S&P 500 vaulted 3.7%, and the NYSE composite and the Dow each leapt 3.6%. Although the U.S. markets scored their best week so far this year, the IBD outlook remains at “market in correction”. Normally, Wednesday’s upside move, on higher volume, would have constituted a follow through day, signifying a new market uptrend. However, the market uptick happened on day three of a rally attempt and a proper follow through day can only occur on day four or later, so we continue to wait. Over the weekend, it appears that Spain has secured a $125 billion line of credit to bail out its faltering banks. The U.S. markets could rally further on this news and a follow through day could occur as early as Monday, or maybe not, as events in Europe tend to be unpredictable and prone to surprises. In any case, keep your watch lists current and be prepared to act if we do get a follow through day and a new market uptrend. Wait for a follow through confirmation, a 1.4+% increase on at least one major index, on higher volume than the previous day, and resist the temptation to jump in early.

With the market in correction, none of the watch list stocks can be considered as buy candidates.

/as usual, your mileage may vary, always do your own homework

Bonus content:

The following stocks currently exhibit potential technical characteristics consistent with historically successful shorting opportunities, emphasis on POTENTIAL:

APOL
CAVM
CJES
CXO
GM
HSP
PMTC
RDC
ST
TSO

INCORRECTLY SHORTING STOCKS CAN LEAD TO UNLIMITED LOSSES. Proceed at your own risk.

/How to Make Money Selling Stocks Short by William J. O’Neil

About these ads

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 26 other followers

%d bloggers like this: