DLTR (6/3/12, +0.00%)
Last week, all the major U.S. indexes took a nose dive. The Nasdaq and NYSE composite both plunged 3.2%, the S&P 500 cratered 3.0%, and the Dow disgorged 2.7%. The IBD outlook remains at “market in correction”. One could argue that the markets are oversold and that we’re due for a rebound, but I wouldn’t count on much of a bounce this week. Even though last Friday’s sell off was vicious, the volume didn’t indicate seller capitulation. Also, at least so far, there’s still no resolution to the festering problem that is Europe. In other words, the U.S. market indexes have all blown through recent support to the downside and, barring some surprise good economic news, there doesn’t seem to be any positive catalyst on the near term horizon that might reverse the current negative trend. Eventually, there will be a new uptrend that works, sooner or later there always is. Until that time comes, cash is king, the position of no pain.
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
The following stocks currently exhibit potential technical characteristics consistent with historically successful shorting opportunities, emphasis on POTENTIAL:
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