Weekly Watch List


ALXN (7/24/11, +58.21%)
AAPL (4/29/12, -4.79%)
ULTA (4/8/12, +0.84%)
DLTR (6/3/12, +10.41%)
MNST (10/16/11, +66.68%)
DG (4/8/12, +10.53%)
TJX (3/25/12, +9.91%)
MA (9/24/11, +26.60%)
TFM (6/17/12, +0.00%)
SSYS (6/17/12, +0.00%)
VRSK (6/10/12, +2.02%)

Additions:
SSYS (6/17/12, +0.00%)
TFM (6/17/12, +0.00%)

Subtractions:
None

Last week, all the major U.S. indexes moved higher for the second week in a row. The Dow gained 1.7%, the NYSE composite added 1.5%, the S&P 500 rose 1.3%, and the Nasdaq inched up 0.5%. Friday’s +1.3% move on the Nasdaq was just enough of a follow through day for the IBD outlook to be upgraded to “confirmed uptrend”. As follow through days go, this one was on the weaker end of the scale and it’s also worth noting that for more than the last decade, no follow through days in June or July have resulted in sustained rallies. Nevertheless, for now it’s a confirmed uptrend so it’s time to start carefully putting some money to work. Start with partial positions until the rally either proves itself or falters.

This week, three watch list stocks are at or near a proper buy point. ALXN, trading at $93.31, has formed a 4th stage flat base with a potential buy point of $95.11. ULTA, trading at $95.84, broke past a $96.75 buy point on good volume, off of a 6th stage consolidation, but reversed intraday and now sits 1% lower. Remember, the higher the base count, the more prone any breakout is to failure and a 6th stage base count is pretty long in the tooth. It could still work, but be cautious. TJX, trading at $42.46, has formed a 1st stage flat base with a potential buy point of $42.91.

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

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