Market Update 06/18/2013

[Natalia]

Hello All,

I have not post anything to the Google Groups for a while... well, market has been tough, a lot of choppy and whipsawing action in the market.

Nonetheless we did get a buy signal on Thursday night when IBD put the market in UPTREND. Since the last correction did not last long at all, many stocks did not have enough time to base.

There are very few base (that I can see), and there are a few additional buy point such as bounce of the 50 day moving average, 3 weeks tight and so on.

I’d like to share some of the set up that I see in my watchlist. Keep in mind these are for educational purposes only, not buy/sell recommendation. And most importantly, you alone are responsible for your decision....

This year I have limited my watch list to focus in the top 10 - 15% of the stock in the market. And how I do that is by screening stocks that have EPS of at least 85, RS of at least 85, accumulation rating of “A” and “B” and the average daily volume of at least 500,000, Industry group looking at the top 100, top 50 is better.

Let’s look at some of them:

TRIP ~ 3 Wks Tight, Buy Point $65.50

PRLB ~ Broke out today from a flat base with 122% abv average volume... It is at the high end of the buy range.

LL ~ bounce of the 50 day moving average, just be careful as this is the third bounce. O'Neil suggested that bounce of the 50 dma can be bought on the 1st and 2nd bounces, more than that is risky. However, if we look at the indices, this too is their third bounce of the 50 dma (Nasdaq and SPX)

DDD ~ Is this a high handle or could form a base on base? Either way it is a 4th stage base that has 75% chance of failing... however DDD has strong fundamental. Keep tight stop and low expectation, perhaps taking profit at 15 - 20%?

MTZ ~ 1st bounce of the 50 dma

LNKD ~ Thru the 50 dma, is this the start of building the right side of the base?

MELI ~ 1st bounce of the 50 dma

Hope this get you started with your homework ~

As I am sure that you can find many other stocks that are setting up.

I look forward to see you all in our next face to face meetup

~ Natalia