Weekly Watch List

DDD (10/28/12, -2.18%)
FLT (11/25/12, +0.00%)
PII (9/23/12, +2.97%)
LMCA (11/12/12, +2.85%)
TDG (9/9/12, -7.75%)
SNI (11/18/12, +2.29%)
MA (10/14/12, +1.66%)
VAL (7/01/12, +17.43%)
JAH (9/9/12, +4.86%)

Additions:
FLT (11/25/12, +0.00%)

Subtractions:
None

Last week, all the major U.S. indexes broke their losing streaks and turned in superb gains, albeit on paltry holiday volume. The NASDAQ rocketed 4.0%, the NYSE composite jumped 3.7%, the S&P 500 vaulted 3.6%, and the Dow leaped 3.3%. IBD strained its own rules by declaring Friday to be a follow through day and changing the IBD outlook to “market in confirmed uptrend”, despite Friday being a half day session with the lowest daily volume of the week. The coming week will put this decision to the test as normal trading resumes Monday, volume picks up, and a slew of significant U.S. economic data unfolds starting Tuesday. If IBD’s uptrend call proves to be correct, it’s time to start putting your cash to work again, so be prepared to act accordingly.

This week one watch list stock is near a proper buy point. VAL, trading at $61.64, broke out of a 2nd stage flat base, on strong volume, and is still within 5% of a $59.91 buy point.

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

Weekly Watch List

DDD (10/28/12, -10.85%)
VAL (7/01/12, +7.96%)
LMCA (11/12/12, -2.48%)
TDG (9/9/12, -10.28%)
SNI (11/18/12, +0.00%)
PII (9/23/12, -1.53%)
MA (10/14/12, -1.85%)
JAH (9/9/12, +1.31%)

Additions:
SNI (11/18/12, +0.00%)

Subtractions:
EBAY (10/7/12, -3.02%)

Last week, all the major U.S. indexes ceded more ground. The Dow and NASDAQ each lost 1.8%, the NYSE composite shed 1.5%, and the S&P 500 gave up 1.4%. The IBD outlook remains at “market in correction”. It was another poor week for equities and there’s still more room to the downside between where we are now and anything resembling what might be construed as market support levels. That said, the week did end with the first day of a new market rally attempt due to renewed talk of bipartisan political cooperation toward finding a solution to the U.S. fiscal crisis. Is this sudden, new found optimism for real or just a head fake? It’s most likely a head fake, but we’ll probably have to wait to find out until sometime after the upcoming holiday shortened, lower volume trading week. If you’ve moved to cash during this correction, Thanksgiving should be that much more enjoyable and worry free.

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:

ADSK
AVT
CSTR
CTRP
ERJ
IM
LRCX
UAL

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

Weekly Watch List

DDD (10/28/12, +7.80%)
TDG (9/9/12, -4.33%)
LMCA (11/12/12, +0.00%)
VAL (7/01/12, +9.37%)
PII (9/23/12, +1.69%)
MA (10/14/12, -1.84%)
JAH (9/9/12, +0.56%)
EBAY (10/7/12, -2.05%)

Additions:
LMCA (11/12/12, +0.00%)

Subtractions:
TFM (9/23/12, +1.19%)

Last week, all the major U.S. indexes cratered. The NASDAQ dropped 2.6%, the S&P 500 slid 2.4%, the NYSE composite fell 2.2%, and the Dow shed 2.1%. The IBD outlook remains at “market in correction”. The day after the election, investors, institutional and otherwise, voted with their feet and headed for the exits. Although there was a slight whiff of political compromise in the air, that quickly dissipated on Friday when president Obama took to the TV and reiterated his stubborn obsession with raising taxes on “the rich”. So, until someone blinks, if that’s going to happen, the looming “fiscal cliff” and “Taxmageddon” will continue to be the prevailing market headwinds and the most likely forecast is for severe ugliness with plenty of turbulence. The safest place to be right now is in cash.

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:

ADSK
BIG
CSTR
ERJ
TRIP
VMW

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

Weekly Watch List

DDD (10/28/12, -0.30%)
TDG (9/9/12, -4.63%)
VAL (7/01/12, +11.91%)
PII (9/23/12, +5.20%)
TFM (9/23/12, -0.37%)
MA (10/14/12, -0.83%)
JAH (9/9/12, +1.05%)
EBAY (10/7/12, -0.08%)

Additions:
None

Subtractions:
PNRA (9/23/12, -1.79%)

Last week, the major U.S. indexes searched for a direction and ended narrowly mixed. The NYSE composite added 0.5%, the S&P 500 inched up 0.2%, the Dow ticked down 0.1%, and the NASDAQ dipped 0.2%. The IBD outlook remains at “market in correction”. As for next week, what’s left to say? The country’s going to choose between two significantly divergent visions for the future. I suspect, in the immediate aftermath of the election, the market will pick a direction and wade into it with gusto. Unless you’re clairvoyant, this is probably one event you don’t want to step out in front of although, if a big follow through day arises, you do want to be ready to pounce on leading stocks breaking out of proper bases. Be sure to vote and then just sit on your cash, watch, and make sure your watch lists are updated. Let’s all hope, either way, there’s a clear winner on Tuesday or early Wednesday and this doesn’t turn into another weeks long scorched earth legal war.

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:

AVT
BIG
BWA
CSTR
PAY
SPN
TSLA
UAL
VMW

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