MA (9/8/13, +5.77%)
Last week the major U.S. indexes ended mixed. The NASDAQ rose 0.7%, the NYSE composite and S&P 500 each faded 0.1%, and the Dow gave up 1.2%. On Thursday, the S&P 500 was saddled with a sixth distribution day, a 0.2%+ drop on higher volume than the previous day, and the IBD outlook was degraded to “uptrend under pressure”. With the President and Treasury Secretary both going on TV to irresponsibly bad mouth the full faith and credit of the United States and talk up the ludicrous possibility of the U.S. defaulting on its debt, it’s not hard to see why the markets are skittish and investor enthusiasm is lacking, almost like this Administration wants to see a market pullback in order to inflict maximum financial pain on the public, for partisan political purposes, during the ongoing budget impasse. Until the final curtain drops on this disgusting Shutdown Theater, it’s probably best to play defense, keep a tight leash on your portfolio, consider raising cash, don’t let profits turn into losses, don’t take a loss of more than 7-8% on any position, avoid new purchases, and otherwise keep your powder dry on the sidelines.
This week neither of the watch list stocks are at or near proper buy points.
/as usual, your mileage may vary, always do your own homework
Making money off this Watch List? Feel free to tip the dealer!