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

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