Weekly Watch List

LULU (6/25/11, +15.20%)
NFLX (7/30/10, +187.80%)
FOSL (3/12/11, +51.00%)
HS (3/5/11, +28.91%)
INFA (10/16/10, +64.27%)
ARUN (6/25/11, +14.38%)
PRGO (4/2/11, +14.08%)
ILMN (5/7/11, +6.94%)
HUM (6/11/11, +3.36%)
CVLT (6/4/11, +14.27%)
EW (7/9/11, +0.00%)

Additions:
EW (7/9/11, +0.00%)

Subtractions:
AGP (3/5/11, +25.89%)

Last week, the major indexes ended mixed. The Nasdaq gained 1.6%, the Dow moved up 0.6%, the S&P 500 added 0.3%, and the NYSE composite dipped 0.2%. The IBD outlook remains at “confirmed uptrend”. Despite last Friday’s employment report disaster and the ongoing housing slump, there are many economic data points that are indicating better growth in the second half of 2011. Earnings season unofficially starts after the close Monday with Alcoa reporting. The coming weeks of corporate earnings reports should give us a better idea as to exactly where we stand. For the time being, it’s okay to step back into the market and buy high quality stocks at proper buy points.

This week, four watch list stocks, INFA, ILMN, HUM, and EW are at or near proper buy points. INFA, trading at $60.91, broke out of square box base and is 1% past a buy point of $60.08. ILMN, trading at $76.12, broke out of a base on base pattern on good volume, but has settled back just under a $76.91 buy point. HUM, trading at $80.82, is just below a $80.93 buy point after breaking out of a three weeks tight pattern. EW, trading at $90.91, broke past a $90.48 buy point on a shallow cup shaped base, but volume was weak, wait to see if the volume picks up and confirms the breakout.

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