Weekly Watch List

OCN (3/17/13, +4.51%)
EVR (6/23/13, +3.26%)
BIIB (6/30/13, +0.00%)
LYB (6/16/13, -1.72%)

Additions:
BIIB (6/30/13, +0.00%)

Subtractions:
None

Last week all the major U.S. indexes turned higher. The NASDAQ moved up 1.4%, the NYSE composite gained 1.0%, the S&P 500 tacked on 0.9%, and the Dow added 0.7%. The IBD outlook remains at “market in correction”. Don’t expect a whole lot of volume or volatility during the upcoming holiday shortened week. The economic news highlight will be Friday’s June employment situation report but the big question is, will any traders still be around to react to it? By now, you should be in a completely defensive posture, waiting for the next uptrend. Continue to sit on your cash and enjoy a relaxing 4th of July or feel free to dabble on the short side if you crave a trading action fix.

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:

CTSH
EW
FTNT
NUAN
RHT
RVBD

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

OCN (3/17/13, +5.25%)
EVR (6/23/13, +0.00%)
LYB (6/16/13, -0.99%)

Additions:
EVR (6/23/13, +0.00%)

Subtractions:
None

Last week all the major U.S. indexes hightailed it south. The Dow dropped 1.8%, the NASDAQ fell 1.9%, the S&P 500 tumbled 2.1%, and the NYSE composite cratered 2.6%. After Thursday’s market drubbing on volume, the IBD outlook did not pass “uptrend under pressure”, did not collect $200, and went directly to “market in correction”. Of course, it’s highly unusual to call a correction with only two index distribution days on an “uptrend”, but last week’s uptrend call was erroneous anyway, so now we’re just back to where we should have been last week, in correction. Play defense, raise cash by culling your weak long positions, and don’t let any gains turn into losses. Sit on your cash until the next legitimate follow through day occurs, signaling an uptrend that might actually have a chance of success or, better yet, cast out some short positions, with tight stops, and see if you can catch a downside run.

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:

CTSH
EW
FTNT
IPXL
ROSE
RVBD

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

OCN (3/17/13, +15.59%)
LYB (6/16/13, +0.00%)

Additions:
LYB (6/16/13, +0.00%)

Subtractions:
None

Last week the major U.S. indexes resumed their recent downtrend. The S&P 500 and the NYSE composite each gave back 1.0%, the Dow lost 1.2%, and the NASDAQ dropped 1.3%. After Tuesday’s sell off, the IBD outlook was changed to “market in correction”. But then, after Thursday’s gains, two days later, IBD inexplicably threw their own rules out the window, declared Thursday as a follow through day, and upgraded the IBD outlook to “confirmed uptrend”. Normally, a follow through day can’t occur until at least the fourth day of a rally attempt. IBD claims that the “rally attempt” started June 6th, while the market, albeit under pressure, was still technically in an uptrend. How they can justify counting rally attempt days, in order to potentially call an uptrend, with the market still in an uptrend, while at the same time counting distribution days, to potentially call a correction, still has ne scratching my head. IBD/CANSLIM, is supposed to be a disciplined system of investing rules with market direction calls being a key element. Although any investing regimen need to allow for some flexibility, IBD, in my opinion, has stretched any such flexibility to the point of breaking with this latest uptrend call and Friday’s negative market action certainly didn’t do anything to support their decision. So, the market’s in an uptrend and the go long lamp is lit, although I would suggest correlating your enthusiasm for making new purchases with your degree of confidence in this latest “confirmed uptrend” call.

This week one of the watch list stocks is currently in a proper buy range. LYB, trading at $67.42, is still within 5% of a $65.79 buy point off of a 1st stage base on base pattern.

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

Weekly Watch List

OCN (3/17/13, +11.36%)

Additions:
None

Subtractions:
JAZZ (5/26/13, +7.56%)
LYB (5/19/13, -3.64%)

Last week the major U.S. indexes put the brakes on their downward skid. The Dow rose 0.9%, the S&P 500 tacked on 0.8%, the NYSE composite added 0.6%, and the NASDAQ inched up 0.4%. The IBD outlook remains at “uptrend under pressure”. Although the market took a bit of a breather, that doesn’t mean that the Bears are done mauling equities. Distribution on the indexes is still elevated and volume on up days has generally been lacking, a sure sign that there is currently a lack of buying conviction on the part of institutional investors. Sit back and let the market pick a definite direction, don’t try and guess which way it will go from here. Continue to use any near term strength to lighten up on your long positions and keep your watch lists, both long and short, at the ready. As long as the market continues to meander without a clear trajectory, move to the sidelines until the uptrend resumes or completely rolls over into correction.

Even though the market is still technically in an uptrend and new purchases are allowed, it’s probably best to refrain from making any. However, this week the one watch list stock is currently in a proper buy range. OCN, trading at $43.92, is still barely within 5% of a $42.17 buy point off of a 3rd stage cup base.

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

Weekly Watch List

OCN (3/17/13, +8.47%)
JAZZ (5/26/13, +6.62%)
LYB (5/19/13, -1.00%)

Additions:
None

Subtractions:
None

Last week all the major U.S. indexes extended their downward move. The NASDAQ slipped 0.1%, the S&P 500 shed 1.1%, the Dow lost 1.2%, and the NYSE composite dropped 1.5%. The indexes were peppered with distribution all week and after the bottom fell out in the final hours of Friday’s trading, the IBD outlook was degraded to “uptrend under pressure”. Proceed with caution, last week’s action was definitely bearish, with distribution magnitude and volatility increasing as the week played out. The market could quickly slide into a correction if the current negative trajectory holds or accelerates. Consider taking profits and cull your losing positions, particularly into the face of any market strength. Shift over onto the defense, start raising cash, and dust off your short selling watch list.

With the uptrend under pressure, now is probably not the time to be opening new positions however, if you enjoy tempting fate, this week, two watch list stocks are currently in a proper buy range. OCN, trading at $42.79, has retaken and is now just above a $42.17 buy point off of a 3rd stage cup base. LYB, trading at $66.65, is still within 5% of a $65.79 buy point off of a 1st stage cup base.

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