Weekly Watch List

LULU (8/28/11, +0.00%)
AH (8/21/11, +4.56%)
ALXN (7/24/11, -7.29%)
ULTA (8/28/11, +0.00%)
RGLD (7/30/11, +16.74%)
NFLX (8/28/11, +0.00%)
HS (8/28/11, +0.00%)
NUS (8/28/11, +0.00%)
BWLD (8/9/11, +6.75%)
SHPGY (8/9/11, +6.31%)
HUM (8/9/11, +5.21%)

Additions:
HS (8/28/11, +0.00%)
LULU (8/28/11, +0.00%)
NFLX (8/28/11, +0.00%)
NUS (8/28/11, +0.00%)
ULTA (8/28/11, +0.00%)

Subtractions:
TJX (8/21/11, +3.42%)

Last week, the long losing streak was finally broken with all the major indexes moving higher. The Nasdaq vaulted 5.9%, the S&P 500 leaped 4.7%, the Dow added 4.3%, and the NYSE composite gained 4%. Tuesday’s jump, across all indexes, on higher volume, constituted a follow through day and changed the IBD outlook to “market in confirmed uptrend”. However, Thursday’s backslide, on volume higher than Wednesday, was a distribution day, indicating institutional selling, and pushed the IBD outlook over to “uptrend under pressure”. A distribution day coming this soon after a follow through day almost always dooms the new uptrend to failure. Nonetheless, Friday’s upward surge wrestled the IBD outlook back to “market in confirmed uptrend”. So, while it’s technically okay to start buying stocks again, proceed with caution and build positions slowly, in small steps. Wait to see if, against the odds, this new, fragile uptrend can grow some bull horns.

This week, unfortunately, or maybe just as well, none of the watch list stocks are at or near proper buy points. They sustained too much technical damage during the correction and it’s going to take some time and positive market action to repair the charts.

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

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