QIHU (9/8/13, +13.95%)
GNRC (9/22/13, -5.55%)
Last week all the major U.S. indexes gained ground. The NASDAQ vaulted 3.23%, the S&P 500 jumped 2.42%, the NYSE Composite rose 2.28%, and the DJIA added 1.07%. IBD upgraded their outlook to “confirmed uptrend” after Wednesday’s legitimate follow through day on the S&P 500. This call can also be justified as the NASDAQ moved to a new high. The good news is, with the political clown parade off the stage for the time being, it’s a green light to start buying leading stocks in proper buy ranges. The bad news is that most leading stocks are now well extended from proper buy ranges. Stay disciplined and don’t chase, look for secondary buy points to ease into a new position and keep scanning for new breakouts. Also, we’re into another earnings season, so resist the temptation to buy a stock right before it reports. Sure, there’s the potential for a price spike on a good report, but you can also get clobbered on poor earnings, sales, or guidance. It’s a better strategy to let the earnings news shake out and then play the stock price where it lies after the report.
This week QIHU, trading at $94.67, is still in secondary buy range up to $98.94 after successfully testing the ten week line, otherwise it’s 166% extended from a 2nd stage cup base, so be careful here.
/as usual, your mileage may vary, always do your own homework
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