Last week, the major indices ended mixed and mostly lower. The Dow added 0.7%, the S&P 500 and the NYSE both shed 0.8%, and the Nasdaq plummeted 2.4%. There were a couple of distribution days this week, also known as institutional selling, and some market leaders, most notably tech stocks like FFIV, got taken out behind the woodshed and beaten like red headed step children for no particularly good reason. As a result, the IBD outlook has degraded to “uptrend under pressure”. If you must make new purchases, be extremely careful. Think about booking profits on your winners and, overall, keep a tight leash on your portfolio, there’s no shame in holding cash while the markets decide which way they want to go.
If you insist on making a new purchase, not recommended at this moment, there are four watch list stocks at or near proper buy points this week, CXO, ILMN, ORCL, and PRGO. CXO, trading at $90.11, found support at its ten week line and is in buy range up to $100.93. ILMN, trading at $68.75 is still within 5% of a $65.59 buy point after breaking out of a three weeks tight pattern. ORCL, trading at $32.51, cleared a $32.37 buy point, off a five weeks tight pattern, on good volume. PRGO, trading at $70.20, blasted through a $68.16 buy point and is still within the 5% buy range.
/as usual, your mileage may vary, always do your own homework