Last week the major U.S. indexes gained ground for a second week, although there was no significant volume to support any conclusions as to a trend in future market direction. The NASDAQ vaulted 2.2%, the S&P 500 advanced 1.6%, the Dow moved up 1.5%, and the NYSE composite added 1.1%. The IBD outlook remains at “market in correction”. With a normal trading schedule resuming this week, we should get a more reliable picture of just which direction the market wants to go. Second quarter earnings season begins Monday and, overall, earnings reports are expected to be lackluster. Pay close attention, keep your watch lists updated, and be prepared to quickly follow where the market leads, either up or down.
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:
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