Last week all the major U.S. indexes lost ground again. The NASDAQ and NYSE composite each lost 1.6%, the S&P 500 dropped 2.1%, and the Dow tumbled 2.2%. On Thursday the NASDAQ picked up a seventh distribution day, breaking the uptrend’s back and shifting the IBD outlook to “market in correction”. Continue moving to the sidelines, raising cash by taking gains on your winners and weeding out your losers. Don’t let profits turn into losses or small losses turn into bigger losses. Keep your watch lists updated so you’ll be ready to pounce when the next uptrend shows itself. If you’re an action junkie, take a stab at some short positions with tight stops and see if you can catch a downdraft.
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
Making money off this Watch List? Feel free to tip the dealer!