Weekly Watch List

OCN (3/17/13, +15.59%)
LYB (6/16/13, +0.00%)

Additions:
LYB (6/16/13, +0.00%)

Subtractions:
None

Last week the major U.S. indexes resumed their recent downtrend. The S&P 500 and the NYSE composite each gave back 1.0%, the Dow lost 1.2%, and the NASDAQ dropped 1.3%. After Tuesday’s sell off, the IBD outlook was changed to “market in correction”. But then, after Thursday’s gains, two days later, IBD inexplicably threw their own rules out the window, declared Thursday as a follow through day, and upgraded the IBD outlook to “confirmed uptrend”. Normally, a follow through day can’t occur until at least the fourth day of a rally attempt. IBD claims that the “rally attempt” started June 6th, while the market, albeit under pressure, was still technically in an uptrend. How they can justify counting rally attempt days, in order to potentially call an uptrend, with the market still in an uptrend, while at the same time counting distribution days, to potentially call a correction, still has ne scratching my head. IBD/CANSLIM, is supposed to be a disciplined system of investing rules with market direction calls being a key element. Although any investing regimen need to allow for some flexibility, IBD, in my opinion, has stretched any such flexibility to the point of breaking with this latest uptrend call and Friday’s negative market action certainly didn’t do anything to support their decision. So, the market’s in an uptrend and the go long lamp is lit, although I would suggest correlating your enthusiasm for making new purchases with your degree of confidence in this latest “confirmed uptrend” call.

This week one of the watch list stocks is currently in a proper buy range. LYB, trading at $67.42, is still within 5% of a $65.79 buy point off of a 1st stage base on base pattern.

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

Weekly Watch List

OCN (3/17/13, +11.36%)

Additions:
None

Subtractions:
JAZZ (5/26/13, +7.56%)
LYB (5/19/13, -3.64%)

Last week the major U.S. indexes put the brakes on their downward skid. The Dow rose 0.9%, the S&P 500 tacked on 0.8%, the NYSE composite added 0.6%, and the NASDAQ inched up 0.4%. The IBD outlook remains at “uptrend under pressure”. Although the market took a bit of a breather, that doesn’t mean that the Bears are done mauling equities. Distribution on the indexes is still elevated and volume on up days has generally been lacking, a sure sign that there is currently a lack of buying conviction on the part of institutional investors. Sit back and let the market pick a definite direction, don’t try and guess which way it will go from here. Continue to use any near term strength to lighten up on your long positions and keep your watch lists, both long and short, at the ready. As long as the market continues to meander without a clear trajectory, move to the sidelines until the uptrend resumes or completely rolls over into correction.

Even though the market is still technically in an uptrend and new purchases are allowed, it’s probably best to refrain from making any. However, this week the one watch list stock is currently in a proper buy range. OCN, trading at $43.92, is still barely within 5% of a $42.17 buy point off of a 3rd stage cup base.

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

Weekly Watch List

OCN (3/17/13, +8.47%)
JAZZ (5/26/13, +6.62%)
LYB (5/19/13, -1.00%)

Additions:
None

Subtractions:
None

Last week all the major U.S. indexes extended their downward move. The NASDAQ slipped 0.1%, the S&P 500 shed 1.1%, the Dow lost 1.2%, and the NYSE composite dropped 1.5%. The indexes were peppered with distribution all week and after the bottom fell out in the final hours of Friday’s trading, the IBD outlook was degraded to “uptrend under pressure”. Proceed with caution, last week’s action was definitely bearish, with distribution magnitude and volatility increasing as the week played out. The market could quickly slide into a correction if the current negative trajectory holds or accelerates. Consider taking profits and cull your losing positions, particularly into the face of any market strength. Shift over onto the defense, start raising cash, and dust off your short selling watch list.

With the uptrend under pressure, now is probably not the time to be opening new positions however, if you enjoy tempting fate, this week, two watch list stocks are currently in a proper buy range. OCN, trading at $42.79, has retaken and is now just above a $42.17 buy point off of a 3rd stage cup base. LYB, trading at $66.65, is still within 5% of a $65.79 buy point off of a 1st stage cup base.

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

Weekly Watch List

OCN (3/17/13, +12.20%)
VLO (5/5/13, +9.60%)
LYB (5/19/13, +0.00%)

Additions:
LYB (5/19/13, +0.00%)

Subtractions:
CI (4/7/13, +5.21%)

Last week all the major U.S. indexes continued their impressive upswing. The S&P 500 vaulted 2.1%, the NASDAQ jumped 1.8%, the Dow gained 1.6%, and the NYSE composite added 1.4%. The IBD outlook remains at “confirmed uptrend”. The indexes shed almost all of their remaining distribution days as the rally continued its climb at a torrid pace. Any investor who “sold in May and went away” should be ashamed of themselves. Of course, the uptrend can’t continue this parabolic move forever without at least some sort of eventual consolidation or pullback, but don’t try and guess when that will occur. Let the market itself tell you where it’s headed and, at least for the time being, it’s telling you that there’s still more room to the upside, take advantage of every opportunity available rack up some gains here.

This week, one watch list stock is currently within a proper buy range. LYB, trading at $67.32, broke out of a 1st stage cup base and is still within 5% of a $65.79 buy point.

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

Weekly Watch List

OCN (3/17/13, +7.51%)
VLO (5/5/13, +3.22%)
CI (4/7/13, +6.63%)

Additions:
None

Subtractions:
GRFS (3/10/13, -5.58%)
PKG (3/24/13, +13.09%)

Last week all the major U.S. indexes moved higher once again. The NASDAQ bolted 1.7%, the S&P 500 jumped 1.2%, the NYSE composite gained 1.1%, and the Dow added 1.0%. The IBD outlook remains at “confirmed uptrend”. The market settled into a bullish groove with positive action coming mostly on increased volume and the isolated index losses coming in small amounts and on lesser volume. A significant number of index distribution days fell by the wayside and the levels are now reasonable. Most of the leading stocks are extended from proper entry points, so don’t chase. Concentrate on the few good stocks that are still just breaking out of bases and run with the rally, there’s a definite tailwind to the upside for the near term.

This week, one watch list stock is currently within a proper buy range. OCN, trading at $42.40, is still within buy range after punching through a $42.17 buy point on good volume, off of a 3rd stage cup base.

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

Weekly Watch List

OCN (3/17/13, -5.70%)
VLO (5/5/13, +0.00%)
PKG (3/24/13, +10.61%)
GRFS (3/10/13, +2.86%)
CI (4/7/13, +4.01%)

Additions:
VLO (5/5/13, +0.00%)

Subtractions:
CVI (4/21/13, +15.53%)
HCA (4/21/13, +8.87%)

Last week all the major U.S. indexes surged higher. The NASDAQ rocketed 3.0%, the S&P 500 vaulted 2.0%, the NYSE composite leapt 1.9%, and the Dow jumped 1.8%. After Monday’s gains, IBD made the unusual move of upgrading the IBD outlook to “confirmed uptrend” without the usual requirement of a large gain on volume follow through day. They justified this as a resumption of the previous rally and also reinstated the relatively high number of distribution days to the uptrend reincarnation. Subsequent action the rest of the week proved this to be the correct decision as the indexes moved to new highs. Still, the distribution levels remain elevated so stay disciplined. Although the stock buying lamp is lit again, only purchase leading stocks in proper buy range.

This week, none of the watch list stocks are currently within a proper buy range.

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

Weekly Watch List

OCN (3/17/13, -7.83%)
GRFS (3/10/13, +3.14%)
PKG (3/24/13, +6.31%)
CI (4/7/13, +1.97%)
HCA (4/21/13, +1.57%)
CVI (4/21/13, +5.06%)

Additions:
None

Subtractions:
JAH (2/3/13, +13.22%)

Last week all the major U.S. indexes moved higher. The NASDAQ surged 2.3%, the NYSE composite jumped 2.0%, the S&P 500 gained 1.7%, and the Dow added 1.1%. The IBD outlook remains at “market in correction”. Even though the overall price action last week was positive, there was no definitive follow through day on volume that would signal a new uptrend. Continue to use any further market strength to weed out your laggard positions and raise cash. Consider locking in profits on your winners. As the current earnings season winds down, remain cautious and wait for the institutional investors to jump back in and start a new rally.

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

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

BBG
EMC
LVLT
MCRS
SWKS

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

Weekly Watch List

GRFS (3/10/13, +1.55%)
OCN (3/17/13, -12.15%)
CI (4/7/13, +0.95%)
JAH (2/3/13, +7.12%)
HCA (4/21/13, +0.00%)
CVI (4/21/13, +0.00%)
PKG (3/24/13, +0.44%)

Additions:
CVI (4/21/13, +0.00%)
HCA (4/21/13, +0.00%)

Subtractions:
None

Last week all the major U.S. indexes cratered on volume. The NASDAQ plunged 2.7%, and the Dow, S&P 500, and NYSE composite each dropped 2.1%. On Monday, the IBD outlook once again slipped to “uptrend under pressure” and then on Wednesday rolled over to “market in correction”. So much for that distribution plagued rally. Raise cash on any strength, don’t let gains you may have on long positions turn into losses, keep your watch lists updated, and feel free to play on the short side until we see the next follow through day, signifying the start of a new uptrend.

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

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

APOL
BBG
MCRS

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

Weekly Watch List

GRFS (3/10/13, +2.96%)
OCN (3/17/13, -5.96%)
CI (4/7/13, +3.38%)
JAH (2/3/13, +10.53%)
PKG (3/24/13, +4.13%)

Additions:
None

Subtractions:
CVI (2/17/13, -13.35%)
HCA (2/10/13, +2.96%)

Last week all the major U.S. indexes bolted higher. The NASDAQ rocketed 2.8%, the S&P 500 soared 2.3%, and the Dow and NYSE composite each vaulted 2.1%. On Wednesday, the market’s positive action on higher volume pushed the IBD outlook back up to “confirmed uptrend”. Although the rally has resumed, the distribution count remains dangerously high, so remain cautious. That said, as a so far unimpressive earnings season ramps up in earnest, the tape is currently indicating that it wants to move higher, don’t fight it.

This week, one watch list stock is in a proper buy range. GRFS, trading at $29.88, found support at its ten week line as in buy range up to $32.58.

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

Weekly Watch List

OCN (3/17/13, -6.95%)
GRFS (3/10/13, -0.72%)
CI (4/7/13, +0.00%)
JAH (2/3/13, +8.18%)
PKG (3/24/13, +2.72%)
HCA (2/10/13, +0.70%)
CVI (2/17/13, -8.00%)

Additions:
CI (4/7/13, +0.00%)

Subtractions:
MX (2/10/13, -1.66%)

Last week all the major U.S. indexes faded. The Dow dipped 0.1%, the S&P 500 lost 1.0%, the NYSE composite dropped 1.2%, and the NASDAQ cratered 1.9%. On Wednesday, the market sold off hard and the resulting distribution degraded the IBD outlook to “uptrend under pressure”. Since then, all the indexes have picked up yet another distribution day and the market seems determined to roll over into a correction. The new earnings season that begins next week isn’t expected to produce an overall positive investment catalyst ether. Lighten up on your long positions, especially any losers you have, raise cash, and get ready to exploit the short side as soon as the seemingly inevitable correction becomes official.

This week, none of the watch list stocks is in a proper buy range, which is just as well considering the current market condition.

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