Market Update & Trade Ideas 08/13/2013

[Natalia]

8/13/2013

Today is day 6 of uptrend under pressure and Nasdaq is 10 point away from hitting 52 week high or 12 years high...

According to the statistic that Tim Reazor given out a while back shows that Market Under pressure generally resolve within 6 trading days, whether it will be resumed uptrend or market in correction...

While leading stocks that I watch looks very healthy, extended, and growing in numbers. The underlying market is not keeping up the pace... so please look at the statistic that I track below: (Picture attached too)

Red Rectangle: Shows the number of stocks with "A" Accumulation. Since we went to Market Under pressure, the number of "A" Accumulation Rating stocks has been steadily declining. (This is from How's the Market Trend, page B2, under Nasdaq Composite headlines)

Blue Rectangle: The total New High, and New Low from Nasdaq, NYSE, and AMEX. This too show that the number of stocks making new high steadily declining compare to those stocks that making new lows, steadily increasing. (From page B5 on the newspaper)

Orange Rectangle: Percentage of NYSE stocks that are UP in volume and percentage of NYSE stocks that are declining on volume. For most of the days are pretty between the up volume and the down volume, with a few days of more downside volume than upside volume.... pretty neutral with slightly bearish in my opinion (which is worthless).

Keep in mind also in the past 10 trading days, on S&P500 we have 4 up days and 6 down days, on Nasdaq we have 7 up days and 3 down days, with a few good above average volume on the up days... which are positive. Nasdaq RS line also pointing up showing out performance.

If and when we hit new high in Nasdaq, we will Resume Uptrend, then, we would need to look at a few stocks that may be a good candidate for watchlist.. (no buy/sell recommendation here, just educational :)) Please do more research and due diligence before purchasing any stocks..

• MELI just re-taking buy point 128.56 from 2nd cup and handle base

• LNKD within 5% of short strokes (read New High/New Low list on Tuesday Paper 8/13 edition)

• ACT re-test of 133.10 buy point, 3rd stage base

• NUS so far looks like a 3 weeks tight pattern with 89.95 buy point (have to see how this close on Friday

• CI 3 weeks tight with 79.35 buy point

• EVR depending on how this will close on Friday there is a potential 3 weeks tight forming with 48.85 buy point

• FLT possible 3 weeks tight depending on how this close on Friday with 100.97 buy point (century mark trade)

• GNRC 10 week bounce (2nd time it looks like )

• YY four weeks tight 48.10 buy point
  

Last but not least DO NOT forget to register for Bill O'Neil Webinar on Thursday here: http://www.investors.com/offer/splash.aspx?id=webinar

Keep your watchlist fresh always and Happy Trading everyone,

~ N a t a L i a ~