Weekly Watch List


ALXN (7/24/11, +43.66%)
ULTA (11/13/11, +23.40%)
LQDT (12/25/11, +23.54%)
MA (9/24/11, +24.48%)
MNST (10/16/11, +26.26%)
NUS (8/28/11, +51.27%)
DLTR (9/4/11, +30.77%)
TJX (2/12/12, +10.94%)
DG (3/4/12, +3.37%)
GWW (1/15/12, +7.66%)
CATM (3/4/12, -0.98%)
VRSK (3/11/12, +0.00%)

Additions:
VRSK (3/11/12, +0.00%)

Subtractions:
GOLD (2/26/12, -2.87%)

Last week, the major U.S. indexes ended mixed again. The Nasdaq moved up 0.4%, the S&P 500 added 0.1%, the NYSE composite lost 0.3%, and the Dow dropped 0.4%. The IBD outlook remains at “confirmed uptrend”. The indexes all suffered another distribution day on Tuesday and the NYSE composite showed stalling action on Friday, also counting as distribution. In addition, recently, up days are coming on lower volume while down days are coming on higher volume, exactly the opposite of what you want to see in an uptrend. It’s almost certain that if the indexes catch any more distribution in the near future, the market uptrend will be put under pressure. Keep riding the uptrend until it actually turns over but start planning for a possible correction, think about trimming your big winners and laggards. There’s no shame in holding cash, especially if it represents a profit. It’s always better to pay taxes on your winnings rather than give your winnings back in a downturn.

This week, only one watch list stock is still at or near a proper buy point. DG, trading at $44.21, is still barely within 5% of a $42.20 buy point, working from a 2nd stage flat base.

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

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