Last week the major U.S. indexes finished mixed. The NASDAQ added 0.2%, the NYSE composite gave up 0.9%, the S&P 500 fell 1.1%, and the Dow dropped 1.2%. The IBD outlook remains at “confirmed uptrend”. Distribution eased on the NASDAQ but the S&P 500 added two distribution days and is now approaching an uncomfortable level. This week all investor eyes will be fixated on the ongoing Washington D.C. fiscal train wreck and whether there will be a partial shutdown of the U.S. Government, which now seems likely. Needless to say, a government shutdown will have a negative impact on the equities market. And even if the politician children manage to stumble their way through this unnecessary, politically manufactured crisis, they’ll be almost immediately faced with yet another politically manufactured standoff that could potentially have a much larger negative impact on markets, the brawl over raising the U.S. debt ceiling. Even though the market is in an uptrend, you’d be foolish not to adopt a more defensive posture for the near term. Keep a tight leash on your portfolio and consider taking some profits and reducing your long exposure until all the Beltway melodrama plays out.
This week two of the watch list stocks are near proper buy points. GNRC, trading at $43.02, is just below a $43.27 buy point off of a late 4th stage double bottom base. MA, trading at $681.85, is still within 5% of a $657.08 buy point off of a late 4th stage flat base.
/as usual, your mileage may vary, always do your own homework
Making money off this Watch List? Feel free to tip the dealer!