Weekly Watch List


GMCR
NEU
PCLN
NVEC
CTRN
CRI
CERN
ADVS
HMSY
MICC
CUB

Additions:
MICC

Subtractions:
DIN
MDAS
MFE
QSII
SNDA

Last week, all major indexes finished slightly up for the week to put an exclamation point to the best July in many years with the the NYSE up 1.4%, the Dow 0.9%, the S&P 500 0.8% and the Nasdaq 0.6%. However, the momentum of the rally is rapidly losing steam and leading stocks are starting to stumble.

This week, none of the watch list stocks are within buy range, which is probably just as well. The rally is showing telltale signs of being “toppy” and could be due for a normal correction. Of course, the markets could keep going higher, and probably will over the longer term, Congress is out of town. Then again, everybody knows Congress will eventually be back spending more money the Chinese are becoming more and more uncomfortable lending to us. Besides, the rally can’t just continue to go up week after week without some type of healthy consolidation.

For now, even though the market is in a confirmed uptrend with only a couple recent distribution days, it’s probably best to just keep a short leash on your winners and, as always, never let any loss run more than 7-8%. Instead of guessing, sit back and let the markets tell you what their next move is.

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

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