Weekly Watch List

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



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