PKG (9/15/13, +0.00%)
Last week all the major U.S. indexes gained ground. The Dow vaulted 3.0%, the NYSE composite jumped 2.1%, the S&P 500 climbed 2.0%, and the NASDAQ gained 1.7%. On Monday, the NASDAQ hit a new multi-year high and IBD changed the outlook to “market resumes uptrend”. Along with the resumed uptrend came the associated, elevated distribution count however, as the week progressed, old distribution days fell by the wayside and the distribution levels are now reasonable. Although Syria seems to be off the table for now and “The Taper” is theoretically baked in, the negotiations leading up to the end of the month deadline for an agreement to fund the U.S. Government could get ugly and provide a potential catalyst for downward market pressure. That said, the market is in an uptrend and it’s once again time to get busy on the long side. Just proceed with appropriate caution until the politicians are done making the fiscal deal sausage.
This week three of the watch list stocks are near proper buy points. BIIB, trading at $234.71, broke out of a 2nd stage cup with handle base on less than ideal volume and has settled back to just below a $234.84 buy point. MA, trading at $666.41, broke out of a very late 4th stage flat base and is still within 5% of a $657.08 buy point. PKG, trading at $54.55, has formed a late 3rd stage flat base on base pattern with a potential buy point of $55.89.
/as usual, your mileage may vary, always do your own homework
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