Last week all the major U.S. indexes rocketed higher. The S&P 500 soared 5.4%, the NASDAQ surged 4.8%, the NYSE composite vaulted 4.2%, and the Dow leapt 3.8%. This newfound investor enthusiasm in the wake of the “Fiscal Cliff” “deal” lifted the IBD outlook back to “confirmed uptrend”. Just when it looked like the markets were surely about to roll over into a correction, the uptrend roared back to life from the brink of what looked like certain death. Did the “Fiscal Cliff” “deal” really do much of anything to resolve our U.S. fiscal mess that would justify last week’s market reaction? Who cares! As they say, watch what the markets are actually doing and don’t try and guess why. Right now, for whatever reason, the markets are telling you to get long although, with index distribution still elevated, make your buys in a careful, disciplined manner.
This week one watch list stock is near a proper buy point. EBAY, trading at $52.78, is still within 5% of a $51.04 buy point, after breaking out of a 2nd stage flat base, and has also recently found support at its ten week line.
/as usual, your mileage may vary, always do your own homework