Weekly Watch List


ALXN (7/24/11, +47.98%)
AAPL (4/29/12, -6.26%)
ULTA (4/8/12, -7.94%)
DG (4/8/12, +0.72%)
MNST (10/16/11, +41.46%)
MA (9/24/11, +30.46%)
DLTR (9/4/11, +43.06%)
TJX (3/25/12, +8.05%)
FFIV (4/29/12, -3.09%)
NSR (4/29/12, -3.66%)

Additions:
None

Subtractions:
GNC (3/18/12, +10.98%)
VRSK (4/8/12, +4.03%)
WXS (4/29/12, -11.32%)

Last week, all the major U.S. indexes took a pounding. The Nasdaq plummeted 3.7%, the NYSE composite dropped 2.7%, the S&P 500 slid 2.4%, and the Dow lost 1.4%. Friday’s savage beating was the culmination of five straight days of distribution on volume and left no doubt as to why the IBD outlook reverted back to “market in correction”. With the outcomes of this Sunday’s French and Greek elections lurching both countries to the Left politically, don’t expect U.S. markets to react favorably to the news. Circle the wagons again and play defense. Consider taking profits in your winners and culling your losers to raise cash. Don’t let profits turn into losses and never take a loss of more than 7-8% on anything. Okay, so the last uptrend disintegrated after only one week. There will eventually be another uptrend that will work. Hunker down, keep your watch lists updated, and wait it out until then.

With the market in correction, none of the watch list stocks can be considered as buy candidates.

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

Bonus content:

The following stocks currently exhibit potential technical characteristics consistent with historically successful shorting opportunities, emphasis on POTENTIAL:

APKT
NFX
NRG

INCORRECTLY SHORTING STOCKS CAN LEAD TO UNLIMITED LOSSES. Proceed at your own risk.

/How to Make Money Selling Stocks Short by William J. O’Neil

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